In a new era of tight credit big down payments, and reserve funds do not guarantee that you will qualify for a mortgage. Now more than any time in recent history credit scores matter. 20% down payment requires a credit score of at least 620. Previously it had been 580. In addition if your monthly liabilities are more than 43% of your gross income you will be inelligible for a mortgage. Most if not all banks have adopted these new standards.
The higher standards are limiting those who can take advantage of the low home prices, low interest rates, and the tax credit.
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