Everything is subprime nowadays as banks, finance companies, and unconventional lenders are less averse to risk and are willing to extend credit to consumers with low FICO scores and inadequate incomes. As the great Yogi Berra used to say, "It's déjà vu all over again."

If you have poor credit and an interest in a home that is above your paygrade, then have no fear!

Moody's Investor Service is out with a new report that predicts mortgage lenders will loosen their lending standards. In 2020, it is anticipated to be a lot easier for borrowers with bad credit to purchase a house as financial institutions attempt to offset the decline in affordable housing options.

Will the housing market be drowning in so-called liar loans – minimal income and document verification – over the next 12 months? Not quite, but Moody's analyst Donald Lee wrote in the firm's outlook that there will be "a high percentage" of loans with "limited or alternative documentation."

Although most of the $11 trillion mortgage finance market consists of tight underwriting standards, you can anticipate an influx of unconventional loans that briefly exited the market following the housing crash. This means that new originators and issuers will set up shop and conduct transactions that are supported by closed-end second mortgages, home equity lines of credit (HELOCs), and loans backed by manufactured homes.