Homeownership isn't for everyone
Letter to the Editor
By Inman News, Wednesday, March 17, 2010.Re: 'NAR: Don't rein in FHA' (March 11)
Dear Editor:
I disagree with the National Association of Realtors regarding access to property with very low FICO scores. We are asking for failure on a new set of buyers.
I have been a full-time Realtor for more than 30 years, and the simple truth of life is that not everyone can afford a home of their own.
It is not a right, it is a responsibility, and good credit is one of the responsibilities.
Sue Piccolini
Prudential California Realty
Cerritos, Calif.
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Submitted by Charita Cadenhead on March 17, 2010 - 3:37am.
I would have to agree with Sue. Buying a home is a huge financial responsibility and one's FICO score is the first indicator of how responsible a person is with their finances. Even if the person's score has improved over, let's say the course of a year, then another year of endurance to increase the score even more would aid in demonstrating consistency, responsibility and patience needed to embark upon such a long term obligation.
Submitted by Emily Bernstein on March 18, 2010 - 3:58am.
The ownership of real property can offer many rewards including but not limited to compounded long-term appreciation, increased sense of community, ability to create a customized living environment, ability to select from the widest variety of real property, and the ability to dictate duration of residence. There is a so-called conventional wisdom that money spent renting a property is akin to throwing money away. This conventional wisdom could not be further from the truth. Regardless of the programs offered by lenders or the government, whether renting or owning is the best decision for a client truly needs to be evaluated on a case by case basis and is comprised of both financial analysis coupled with lifestyle needs/preferences. To occupy a comparable property here in Atlanta, renting almost always costs less than owning, requires little to no money down, encompasses little to no exposure to costs such as maintenance/repairs/special assessments, and typically does not have any transactional costs associated with lease initiation and disposition. The following clients are typically candidates for renting as opposed to owning:
• Clients planning on spending less than 2 to 3 years in their residence
• Clients involved in transient professions such as pro-athletes on 1 or 2 year contracts and/or contracts without no-trade clauses
• Clients relocating to a new city and looking to get settled in the community and (potentially) new job before making a long-term commitment to a city and a particular property.