Recently, we’ve read and heard much about what needs to be done to improve homeownership opportunities. A recent survey shows that many Americans are concerned with the housing market and believe the presidential candidates need to address this issue. The surveys say the lending industry and the government need to do more.
Is this true or is it that consumers just aren’t getting the right message. (Loans) Lenders are open for business and are ready, willing and able to finance homes. There are plenty of low down payment programs that can be used by consumers with mid, or less, 600 level credit scores. So, why aren’t consumers out looking for homes?
Misperception! People still believe the old standard that you need at least 20% down and stellar credit to buy a home. Lenders need to get the word out that nothing can be further from the truth.
Consumers seem to be getting the wrong message from all those credit score commercials. One indicates that you need a great score so you can move out of your parent’s basement. The credit score reflected on the mobile app is somewhere around 700 or higher.
The candidates may need to address housing and maybe the government should do more. You know how I feel about too much government involvement. It ain’t good. Lenders need to do more to educate consumers on what programs are available to help them buy a home and what is needed to qualify.
With continued low mortgage rates and the available low down payment programs, there’s opportunity for more business. To get it, lenders need to do a better job of educating consumers on their options. It’s not just the down payment hurdle, but also the new credit score challenge. We have the programs to overcome these perceived obstacles to homeownership. We just need to get the word out.
Maybe, if we do so we can help to increase our business and homeownership while minimizing the government’s involvement in our industry.
Spread the good word. We have the money to lend and programs available to meet the needs of most qualified buyers. Consumers need to know the facts. Help yourself by helping consumers.
Is the misconception about credit score and down payment really the barrier to homeownership or do you believe there may be other obstacles to homeownership, like stable employment and adequate income?