Two Changes Necessary to Bring First-Time Buyers Back into Housing Market
According to Richard Smith, CEO of Realogy, two major factors need to change if we want to see more first-time homebuyers enter the real estate market.
First, he says, the fees associated with FHA loans – the “traditional form of purchasing a home” for most first-time homebuyers – need to be drastically reduced. And second, underwriting methodologies need to be revised.
“The first-time buyer, traditionally, is a higher-risk buyer,” Smith said. “But with some, I think, basic considerate underwriting we can get the first-time homebuyer back.”
Image via flickr/Mark Moz