According to poll results from the National Foundation for Credit Counseling, the principal barrier to homeownership is accumulating the money needed for a down payment and closing costs.
Of the more than 2,000 poll respondents, only 12 percent said they'd have no problem coming up with a 20 percent down payment, while 49 percent of those polled say they would never be able to save that much.
The National Association of Realtors® research found that 61 percent of recent home buyers relied on savings as a source for their down payment and 22 percent were helped by a gift from a relative or friend. Forty-two percent of repeat buyers used proceeds from the sale of their previous home.
With home equity declining in the recent 5 years, it is not surprising that existing home owners who desire to move up to a larger home, or even downsize to a smaller one as their needs change are having difficulty.
In addition to these factors, new home buyers are facing the credit challenges of difficult times, and with
FHA and other lenders rules changes in recent years, borrowers typically need at least a 620 great score or greater to qualify for a loan. In these times, getting a little help can be important to being able to achieve the goal of homeownership.
As a local Realtor in Battle Creek, Michigan I work with prospective home buyers every week, and those that really have the desire and motivation to become a home owner can usually make it. Yes, there are challenges. Sometimes one has to save some reserve funds, and get a little education on how to do this.
Other people need some help on building credit, or improving credit. Often times this comes about through teamwork with a local lender and me as your Realtor. If you are motivated to become a homeowner, then give me a call at: 269-441-8182 or contact me through my website at: www.michaeldelaware.com.
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He is your key to the best homes in the region!
2010 'REALTOR OF THE YEAR'
For the Battle Creek Area Association of Realtors
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Michael ~ that is excellent information. Home ownership is in trouble. I just hope and pray that this market improves.
Michael, Great information. It sounds like you are a good problem solver and in this day and age people need to know the ins and outs of home ownership.
Dawn, things will not always be like this. I am certain we will see a resounding recovery down the road.
Marchel - Thank you! We all have to be sort of problem solvers these days, don't we?