Will Anyone Qualify to buy a Home????
The headwinds for buyers get stronger and stronger.
Pretty soon buying a home will be as much fun as flying commercial or getting a lower GI exam.
For home buyers, the hurdles for buying a house are getting higher and higher. Pretty soon, only a few may qualify to buy a home.
Mortgage insurers have been dramatically tightening their standards throughout the U.S., further squeezing potential home buyers.
Stung by growing defaults, lenders are increasingly compelling potential borrowers to purchase private mortgage insurance. Mortgage insurance, required for buyers who are unable to make a full down payment or who have insufficient credit histories, reimburses lenders in the event of a borrower default. But over the past few months, mortgage insurers have been declaring more and more of the U.S. a "declining market," raising the requirements and making such insurance harder to obtain. The result: another hurdle for home buyers, and yet another wrenching change for the struggling housing market.