Oregon Real Estate Marketplace

Home buying has become more difficult over the past few years in Eugene/Springfield. We have gone from the “fog a mirror” scenario to one where you actually have to be willing, able and wanting to pay for your mortgage.

I was especially intrigued by this comment by Diana Olick, with CNBC Realty Check:

Credit has become very nearly elitist.

I think in a lot of ways she is absolutely right. Take a look at what has happened in the mortgage business lately. Sub-prime loans are gone. Stated income loans are gone. No doc loans are gone. Option ARM loans are gone. 100% conventional financing is gone. 80/20 financing is gone. Most of those should have been eliminated. However, I think that used properly, the stated income loan was an excellent tool. It was when loans came in for a hamburger flipper at one of the chains making $4,500 a month that they became a problem.

Check out this webinar for information about fixing your credit:

But, on the other side, we have seen credit card companies lowering credit limits and changing credit scores in the process and making once prime borrowers now on the lower end of the credit scale. Most lenders funding FHA loans changed their internal guidelines to include minimum credit scores that were far higher than what FHA has suggested. Fannie Mae started adding charges for any loan above 75% loan to value, even if you have a 840 credit score. If your credit score is 640, WOW!

Eleven percent of the houses in America are empty. This as builders start to get more bullish, and renting apartments becomes ever more popular. Vacancies in the apartment sector have been falling steadily and dramatically, why? Because we’re still recovering emotionally from the toll of the housing crash.

Younger Americans have seen what home ownership has done to their friends and families, and many want no part of it, according to Ms. Olick.

On this point, I disagree. I think that the “American Dream” is still alive. I think there are a huge number of people that would like to buy a home but they have heard so much negative talk about it that they are scared or don’t think there are mortgage loans available. They also don’t realize that they can qualify to buy a home and in many cases for less than they are paying for rent currently.  Rents in many cases are climbing, just check this statistic from the same article:

The number of vacant homes for rent fell by 493 thousand, as rental demand rose.

So, my advice is to check with your mortgage professional and see if you can qualify for a loan first. If you do, start looking. There are huge deals out there and now is the time to take advantage of them.

Contact me

Navigating the mortgage approval process can be daunting. You need someone on your side. I am available right now to help you with the loan process and know the ins and outs of FHA, VA, USDA and conventional financing. If you want to buy a home using an FHA loan or refinance using VA, I am here to help. Contact me at Alpine Mortgage Planning, 1200 Executive Pkwy., Ste. 100, Eugene OR 97401, 541-342-7576/541-221-3455 cell or by e-mail. Only you can make the choice it is time to get the process started.

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