Largo, FL (September 30, 2014) – Internet media this week shared more than one study of a bright light in the future housing market. Much has been written this year of the lag in the housing market attributed in part to traditionally younger generations who would be buying homes and having to delay purchasing compared to previous generations.
Millennials, those born after 1981 and later, according to a Zillow survey and report this week, have more conventional views about housing which include owning a home as “necessary for a living a good life, central to the American dream and part of being a respected member of society.” The results of the survey are attitude driven vs. financial capability or creditworthiness driven which means there is a desire and focus on home buying however the ability to buy based on finance or credit is missing. The adage though, “if there is a will, there is a way” could help drive the forces which shape access to the housing market.
The National Association of Realtors (NAR) this week also shared a report on Millennials. Its survey found with the economic upheaval of the last years, Millennials would prefer to find themselves in more stable working arrangements vs. their predecessors. Millennials would also be open to commute longer distances than their predecessors allowing for more growth of suburbs.
Reuters surveyed 20 major metro areas and in 14 found renters do not believe right now is a good time to buy a home however a majority of renter households reported owning a home as a specific goal and something they would like to do in the future.
Reports such as these should help lenders evaluate their products to create products, made in line with Fannie Mae and Freddie Mac guidelines, which accommodate the credit worthiness and financial ability of renters who would like to transition to home, keeping in mind cautions to not put new home buyers in positions they found themselves in the mid and late 2000’s where getting in to buy a home was easy but the responsibility of maintaining was catastrophic.
We have seen a change, for example, with medical accounts in collection appearing on credit reports. Lenders are not excluding reviewing loans for possible approval just on the basis of medical accounts in collection appearing on a credit report.
Additionally, there are lenders already with particular programs which take into consideration lower FICO scores and minimal credit lines. If you would like more information on programs which may be available to you, please give us a call at 727-209-1020 or email us at email@example.com. We would be happy to consult with you and provide you with options.
Fiduciary Funding, LLC works with a number of leading lenders to provide mortgage solutions for families. We are licensed in the state of Florida. Please feel free to contact us by phone or email if you have any questions or comments on this commentary.