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Five Great Things about Homeownership

  • When you pay rent, you never see that money again
  • Homeownership is about building long-term wealth
  • Homeownership means you "own" your home. That comes with some incredible perks
  • It's a great time to buy

Recession Sparks 12 Surprising Comebacks

  • Comeback Kid #6: Seller Financing
  • sellers are having a hard time selling and are looking to offer incentives to potential buyers.
  • Comeback Kid #7: Lease to Buy
  • making a comeback in the home-buying world is the old lease with an option to buy. It can be a win-win for both the buyer and the seller.
  • For the seller, it means immediate income at a time when buyers are scarce.

Lack of financing may derail growing housing investments

  • housing supply only set to increase
  • leaving the market in the hands of first-time homebuyers — many of whom no longer qualify for credit because of tightened underwriting guidelines.
  • "The concern is that there may be a limited pool of such buyers and that first-time buyers will not be able to fill any void."

Tight Credit Continues to Shut Buyers Out

  • And it’s not just buyers with poor credit histories being rejected for home loans--some buyers are even coming with stellar credit scores and big down payments, experts say
  • The percentage of mortgage applications rejected by the nation's largest lenders increased last year:
  • The country’s 10 largest mortgage lenders denied 26.8 percent of loan applications in 2010, which is up from 23.5 percent in 2009, according to an analysis by The Wall Street Journal
  • Lenders don’t appear to have plans to ease credit soon either. Nearly four in 10 banks reported even tighter mortgage lending standards for the 12-month period ended in February,

Credit Scores Rising

  • The company found that the average credit score for loans approved by lenders and closed is steadily rising, while acceptable loan-to-value (LTV) ratios are declining.
  • The average credit score on loans that closed was 750 in February, up from 740 six months before.
  • the average loan-to-value (LTV) ratio was 76 percent, a decrease of 3 percent from August 2011.

Housing Crisis to End in 2012 as Banks Loosen Credit Standards

  • While credit conditions may have loosened slightly, some potential homebuyers are still struggling with credit requirements.

Single-Family Rental Growth

  • Overall, single-family renters increased by 2.7 percentage points from 2005 to 2010
  • the single-family rental sector is cutting into the market share of multifamily housing. However, Fannie Mae says “the single-family renter does not fit neatly into the age and income demographic that typically drives multifamily rental demand.”
  • While 43.8 percent of all renters in 2010 paid more than 35 percent of their income toward their rent, a slightly higher percentage – 44.1 percent – of those renting single-family homes spent more than 35 percent of their income on rent
  • Fannie’s report points out that those ages 35 to 54 comprise 49.7 percent of the rental market, while the same age group comprises 63.1 percent of the owner’s market.
  • recent growth in single-family renting to “an increase in vacant single-family housing, a decline in the homeownership rate, and a growing renter constituency with demand for a rental unit that provides the benefits of the single-family structure.” 

Seven Out of 10 Renters Say Owning a Home is a Top Priority

  • a majority of renters aspire to home ownership as a long-term goal.
  • According to the 2011 National Housing Pulse Survey released today by the National Association of Realtors®, 72 percent of renters surveyed said owning a home is a top priority for their future, up from 63 percent in 2010.
  • “Despite the economic setbacks Americans have experienced in today’s current climate, it is clear that a strong majority still believe in home ownership and aspire to own a home,” said NAR President
  • As currently proposed, borrowers with less than 20 percent down will have to choose between higher fees and rates today – up to 3 percentage points more – or a 9-14 year delay while they save up the necessary down payment.
  • “Home ownership offers not only social benefits, but also long-term value for families, communities and the nation’s economy.
  • When asked why home ownership matters to them, respondents cited stability and safety as the top reason. Long-term economic reasons such as building equity followed closely behind.

Rents Rising as More Americans Can

  • And in the search for affordable housing, many consumers are relying on an already strained apartment market for temporary accommodation
  • Consumers are renting more,
  • rise in rents and drop in homeownership costs

Rents keep rising as home prices stagnate

  • Renting used to be cheaper than buying. But in many U.S. cities that's no longer the case, as rents continue to climb and home prices stagnate.
  • asking prices for homes declined 0.7% over the past 12 months through March, rents rose 5%, according to a report released
  • "Buying a home is more affordable than renting now in almost every part of the United States,"
  • buying a home more affordable than it's ever been and a bargain compared to renting.
  • many Americans will not be able to seize this historic opportunity to become homeowners
  • Unemployed, too broke to come up with a down payment or with credit scores too battered to qualify for a mortgage, many people simply cannot qualify to buy a home right now
  • With fewer consumers able to make the leap into homeownership, rents could continue to climb higher

As Home Rents Head Higher, Owning Regains Its Appeal

  • Climbing rents for apartments are combining with a continued decline in home prices to push once-reluctant home buyers into finally taking the plunge, say economists and real-estate agents
  • real-estate agents say they are fielding more calls from anxious tenants complaining about rising rents
  • rising rents, coupled with slumping home prices and interest rates near record lows, are boosting demand for homes at entry-level prices.
  • "The equation of renting versus owning is becoming much more favorable for owning,"
  • research found that the cost to rent an apartment was about 15% higher than the cost to own a home. Conditions are "overwhelming in the favor of buying now. It is unequivocal
  • "The entry-level market is back,"
  • It isn't always easy for individual home buyers to make it to the closing table, however. Lending and appraisal standards remain tight, keeping many would-be buyers out of the market.
  • number of homes purchased by investors rose 65% during 2011 to 1.2 million, representing 27% of all sales.

How Can Renters Solve the Housing Crisis

  • renters are going to solve the housing crisis
  • rental rates are growing at more than 5% per year and this trend is also accelerating.
  • keep your eyes peeled for a private sector player to seize this opportunity to create America’s first national investor mortgage brand.
  • The estimates are that half a million investor loans close every year, and who owns that niche? No one.
  • This drastic increase in rental demand is a by-product of the foreclosure crisis.  Use it against the crisis by turning it into positive cash flow investments for those willing to be confident and take a risk in this environment.
  • create housing options for newly minted renters, 
  • Good credit renters and buy-hold investors will be the heroes at the end of this saga.

Zillow report Median Rent Prices on the Rise as Home Values Drop

  • While homes prices continue to be on the decline, rent prices are actually on the rise

CoreLogic-Best Markets for Single-Family Rental Investments

  • single-family rental market accounts for 52 percent of the residential rental market.
  • unlike multifamily rentals, single-family rents increased during the recession.
  • reports showing rental prices have gone up and home prices have decreased
  • during the last five years, foreclosures have turned 3 million former homeowners into potential renters

Homeownership and Vacancy Rates Drop

  • nation’s homeownership rate dropped to 66.0 percent – its lowest level in nearly 14 years – as the housing downturn has eaten away at the share of Americans who are willing and able to own their own home.
  • there are more households in the rented sector and fewer properties lacking tenants, which is helping to drive rents, and therefore landlords’ returns, higher
  • it will be a while yet before homeownership is once again seen as an essential part of the American Dream, and that’s despite the fact that owning now seems to make greater financial sense than renting.

Industry Responds to Government's Request for REO Rental Ideas

  • government is considering inventive ways to divulge excess inventory and return stability to the housing market
  • As foreclosed homeowners are forced out of their homes, the rental market becomes increasingly competitive, and the need for affordable rental housing rises.
  • The industry has responded with enthusiasm, ….. Suggestions include lease-to-own options, rent-and-hold, and joint profit sharing.
  • selling homes to owner-occupants remains the most desirable option

Hispanics Projected to be Mega-Consumer in Housing Market

  • With Hispanics as the largest minority group in the U.S., mortgage industry professionals should also expect Latinos to be key players when it comes to America’s home buying future
  • Whether examining data on population, labor, and education, numbers are pointing to Hispanics as a growing consumer in the housing industry.
  • Hispanics don’t view home ownership as an investment, but want a home for a stable environment for their families
  • Latinos filled 1.4 million or 60 percent of the 2.3 million jobs added to the economy in 2011 and are expected to account for 40 percent of the estimated 12 million new households over the next 10 years
  • Echo Boomers, which are those born between 1986 and 2005, are led by Hispanic households and in the next 15 years, this group will create substantial demand for condominiums, smaller starter homes, and first trade-up homes

How long is the approval process from beginning to end?

Every situation is different; however, Chattels Real, LLC is committed to fast, efficient service. The complete process generally takes approximately 3-5 days.

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