WASHINGTON – Oct. 25, 2011 – The homeownership rate is at its second-highest level on record, only behind the record high set in 2000, according to the U.S. Census Bureau, which began collecting homeownership data in 1890.
By region, the homeownership rate is:
• Midwest: 69.2 percent
• South: 66.7
• Northeast: 62.2
• West: 60.5
Nearly every metro area had more homeowners than renters in 2010. The metro areas with the highest homeownership rates were in Michigan and Florida. Monroe, Mich., had the highest percentage of owner-occupied units at 79.8 percent, followed by Punta Gorda, Fla., at 79.7 percent.
While the national homeownership rate remained high, the decrease in the rate from 2000 to 2010 by 1.1 percent – to 65.1 percent overall – is the largest decrease since the 1930 to 1940 period, the Census Bureau reported.
States with highest housing inventory
Meanwhile, housing inventory soared 13.6 percent to 15.8 million units from 2000 to 2010, growing the fastest in the South and West. The states with the largest percentage increase in housing units were:
Nevada: 41.9 percent
Arizona: 29.9
Utah: 27.5
Idaho: 26.5
Georgia: 24.6
Florida: 23.1
North Carolina: 22.8
Colorado: 22.4
Texas: 22.3
South Carolina: 21.9
Source: U.S. Census 2010 and “Homeownership Near Record,” Investors.com (Oct. 20, 2011)
© Copyright 2011 INFORMATION, INC. Bethesda, MD (301) 215-4688
Tuesday, October 25, 2011
Monday, October 10, 2011
30% of buyers denied or give up on mortgage
WASHINGTON – Oct. 10, 2011 – Credit has gotten tighter, and more buyers are being left out – or becoming so frustrated they give up. Last year, more than 2 million people were turned down for mortgages, according to the Federal Financial Institutions Examination Council.
About 30 percent of buyers are either denied a mortgage, or they drop out of the application process, the Mortgage Bankers Association estimates.
Biggest reasons for rejection:
• Insufficient income: Buyers cannot afford a $1 million home if they make $50,000 per year.
• Credit details. There are a lot of rules, and it’s not easy to understand what a bank wants. Overtime income, for example, only counts if documented for at least two years to some lenders. Rental income may only count if the borrower has a 30 percent equity stake in the building.
• Bad credit. If a credit score is somewhere around 620 to 660, depending on the bank, lenders say no almost automatically.
• Appraisals. If an appraisal is lower than an agreed-upon selling price, the lender balks.
• External problems. A lender could nix an application if the homeowners’ association has issues or the neighborhood has problems.
• Incomplete information. Paperwork problems – incomplete information, missing forms, etc. – bog down about 12 percent of applications.
And “it’s common to get turned down if you have a gap in employment history over the last two years,” says Erin Lantz, director of the Zillow Mortgage Marketplace.
Source: “Triggers for Rejection,” The New York Times (Oct. 6, 2011)
© Copyright 2011 INFORMATION, INC. Bethesda, MD (301) 215-4688
About 30 percent of buyers are either denied a mortgage, or they drop out of the application process, the Mortgage Bankers Association estimates.
Biggest reasons for rejection:
• Insufficient income: Buyers cannot afford a $1 million home if they make $50,000 per year.
• Credit details. There are a lot of rules, and it’s not easy to understand what a bank wants. Overtime income, for example, only counts if documented for at least two years to some lenders. Rental income may only count if the borrower has a 30 percent equity stake in the building.
• Bad credit. If a credit score is somewhere around 620 to 660, depending on the bank, lenders say no almost automatically.
• Appraisals. If an appraisal is lower than an agreed-upon selling price, the lender balks.
• External problems. A lender could nix an application if the homeowners’ association has issues or the neighborhood has problems.
• Incomplete information. Paperwork problems – incomplete information, missing forms, etc. – bog down about 12 percent of applications.
And “it’s common to get turned down if you have a gap in employment history over the last two years,” says Erin Lantz, director of the Zillow Mortgage Marketplace.
Source: “Triggers for Rejection,” The New York Times (Oct. 6, 2011)
© Copyright 2011 INFORMATION, INC. Bethesda, MD (301) 215-4688
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