Wednesday, December 10, 2014

The NAR wants Congress to make it easier for 1st time home buyers

The National Association of Realtors voiced its concerns on Monday to the U.S. Senate Banking Subcommittee on Housing. According to NAR Conventional Finance and Lending Committee Chair Mabel Guzman “The housing market hasn’t been this unwelcoming to first-time buyers since 1987,” she told the committee. “Tight credit, high fees and low inventory have combined to make it prohibitively expensive for millions of responsible, creditworthy prospective buyers to own a home. If this is the direction that the housing market is taking, we’re headed down the wrong path.”

Many realtors are sure to agree that while the economy has improved significantly in the last year, there are certain restrictions facing young buyers and those with low to moderate incomes which make it quite difficult to qualify for a home loan. The NAR feels that some of the pricing policies put forth by both the FHA (Federal Housing Administration) as well as the FHFA (Federal Housing Finance Agency) make it extremely difficult for buyers with short credit histories and lower cash down payments to purchase their first home.

According to the NAR, in 2013 almost 400,000 borrowers that were considered to be credit worthy were not able to buy a home due to the high FHA insurance premiums. This is just one example of what they would like to see changed in an effort to help more 1st time buyers realize their dream of home ownership. The NAR would also like to see more flexible and affordable financial choices for new buyers.

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