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Interesting perspective. Are there any statistics on this? Another important but often forgotten fact is that most of the jobs created nationally in recent times are not family or living wage jobs that allow for purchase of a house, at least the good kind. Thus, we should expect a rise in the number of involuntary renters.

Interesting perspective. Are there any statistics on this? Another important but often forgotten fact is that most of the jobs created nationally in recent times are not family or living wage jobs that allow for purchase of a house, at least the good kind. Thus, we should expect a rise in the number of involuntary renters.

Interesting perspective. Are there any statistics on this? Another important but often forgotten fact is that most of the jobs created nationally in recent times are not family or living wage jobs that allow for purchase of a house, at least the good kind. Thus, we should expect a rise in the number of involuntary renters.

[quote=HLS]With home ownership recently approaching 70%, there is another group that has no interest in buying a house and yet another group that cannot qualify for a loan for various reasons.

What is left seems to be a very small slice of interested buyers who can qualify for a loan by today’s guidelines.

I am seeing a number of people with some but not all of the following: high credit scores, lots of cash, low debt and a job, but for one reason or another they do not qualify for a loan.
Those with a recent foreclosure will not be able to buy for 2 to 5 years based on current guidelines.

I believe that the % of the population that can qualify for a loan is possibly the lowest that it has ever been.
Many people that want to buy a house have absolutely no chance of buying now.[/quote]

I doubt it’s the lowest… Prior to the change in lending requirements you needed good credit and a good down payment (plus the income to meet the payments.) 20% down was minimum. We still have programs that let you put very little down – so there are more people that qualify now than did 30 or so years ago.

Factor in the fact that banks used to redline black neighborhoods – so that also reduced the number of people who qualified for loans. (It’s where the term redlining comes from – the maps banks had that showed where not to make mortgages because of the demographic makeup. The areas that were unloanable were colored in red.)

I don’t want to see redlining return. But I am very much in favor of bringing back the underwriting standards of old – you needed to save (a LOT) for a downpayment. You had to have a good, long term, career/income and you had to have very good credit.

[quote=HLS]With home ownership recently approaching 70%, there is another group that has no interest in buying a house and yet another group that cannot qualify for a loan for various reasons.

What is left seems to be a very small slice of interested buyers who can qualify for a loan by today’s guidelines.

I am seeing a number of people with some but not all of the following: high credit scores, lots of cash, low debt and a job, but for one reason or another they do not qualify for a loan.
Those with a recent foreclosure will not be able to buy for 2 to 5 years based on current guidelines.

I believe that the % of the population that can qualify for a loan is possibly the lowest that it has ever been.
Many people that want to buy a house have absolutely no chance of buying now.[/quote]

I doubt it’s the lowest… Prior to the change in lending requirements you needed good credit and a good down payment (plus the income to meet the payments.) 20% down was minimum. We still have programs that let you put very little down – so there are more people that qualify now than did 30 or so years ago.

Factor in the fact that banks used to redline black neighborhoods – so that also reduced the number of people who qualified for loans. (It’s where the term redlining comes from – the maps banks had that showed where not to make mortgages because of the demographic makeup. The areas that were unloanable were colored in red.)

I don’t want to see redlining return. But I am very much in favor of bringing back the underwriting standards of old – you needed to save (a LOT) for a downpayment. You had to have a good, long term, career/income and you had to have very good credit.