Credit Scores Sink 1/3 of Possible Homebuyers

Even though home prices and interest rates have come down dramatically, many Americans aren't able to qualify for mortgages because they have low credit scores, a new survey reveals.

According to a recent study, nearly 30 percent of all Americans searching for home loans are effectively locked out of the conventional mortgage market because their FICO credit scores fall below 620. (See AOL Real Estate's guide on "How to Get a Home Loan With Bad Credit.")

The fact that so many Americans have poor credit ratings isn't necessarily new information. Experian, one of the big three credit bureau, and Fair Isaac, creator of the FICO credit score, have each found that about 40 million to 45 million Americans have bad credit, or scores of of less than 600.