Newbie Homebuyers Face New Challenges
It’s the best and worst of times for New Yorkers looking to invest in their first homes, according to the cover story in Sunday’s real estate section of the Times. On the one hand, there’s less competition for properties, prices aren’t skyrocketing, and mortgage rates are low. On the other hand, lenders are wary of…
It’s the best and worst of times for New Yorkers looking to invest in their first homes, according to the cover story in Sunday’s real estate section of the Times. On the one hand, there’s less competition for properties, prices aren’t skyrocketing, and mortgage rates are low. On the other hand, lenders are wary of giving mortgages to would-be borrowers with less than stellar credit (700 is the magic credit history number; any lower than that, and lenders aren’t going to be falling all over themselves to issue a loan). As a result, some first-time buyers are getting creative. One buyer in Clinton Hill, for example, probably wouldn’t have gotten banks to approve his purchase of a $427,500 condo since his credit score was less than 700 and he only had $20,000 saved for a down payment. HSBC gave him a loan, however, because it has a program for ZIP codes with large minority populations and the buyer’s income was high enough to cover monthly mortgage payments. Another couple profiled in the article had their closing delayed despite the fact that they had good credit because their lender wanted them to take an online course about their mortgage (what a drag!). Any readers having troubles securing their first home loans?
Jitters for First-Time Homebuyers [NY Times]
Photo by bonddidwhat.
11:58 made millions in RE. How about you?
Well lets see. 20% downpayment on a cheap 600,000 apartment is $120,000, plus closing costs = another $10K. Simple. I think I bring that home in a couple weeks. Doesn’t everyone?
how do people find it so hard to save money for a down payment?
its not just here. I sometimes watch “My First Place” on cable, and all these people around the age of 30 have little savings and trying to buy with no money down.
WTF?
11:58 – do you even read newspapers, WSJ, NYT, anything? You are delusional if you think the market is not coming down. Believe me, NYC prices can come down fast. Ask HUNDREDS of real estate developers who lost all their money in the 80s crash.
11:58 = fool
12:01 = liar.
Depends on where you are. Prices in Williamsburg are down significantly from last year. Last year I looked at a 3 family for 1.5 ML when comps were similar, but the owner pulled it. Its now back on for 1.075 ml and I’m seriously looking at it at the new price, although not sure it would appraise anymore with appraisals being tight.
prices are up from a year ago.
I am the 11:39 poster. I am not a broker.
I said in the past 6 months – meaning a few of them have sold in the past month.
NYC Real estate does not drop as rapidly as you would like to think.
Keep on hoping prices are tanking and you will miss another opportunity to buy.
Prices will be up at leat 10% year to year by late Spring.
In the current market 6 months ago might as well be 6 years ago. The crumbling of NYC markets is happening daily as we speak. Comps from 2 months ago are no-longer viable. Brokers I know are talking comps in terms of 2 weeks, not 2 months. And remember a comp is not a comparable listing, but a comparable SALE. Just because 50 people have listings overpriced does not make them comps. Its the closed sale that makes a comp, and those are falling all over the city. Any Broker stating otherwise is trying to make a sale.