Is credit as tight as some analysts claim? American Enterprise Institute says no, because first-time buyers with so-so credit flooded the market last month.
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- The AEI took issue with observations put forth by the National Association of Realtors that credit standards are still too tight.
- The International Center on Housing Risk is contending that first-time buyers are making low downpayments and have less-than-stellar credit.
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The strong housing market we experienced this summer may have been driven more by current homeowners buying additional properties than first-time homebuyers, the latest Campbell/Inside Mortgage Finance HousingPulse Tracking Survey suggests. But a recent report from the American Enterprise Institute (AEI) offers the conflicting view that first-time buyers have been gaining market share for several months.
Mortgage Credit Certificates (MCCs) are an attractive option for homebuyers hoping to qualify for a loan in states that run the program. As the program’s tax credits can be used as qualifying income, lenders will underwrite to a higher purchase price than they would otherwise.
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The new TILA-RESPA Integrated Disclosure (TRID) went into effect on Oct. 3, 2015. It’s two months later, and real estate professionals, as well as many buyers, have given the acronym a new meaning: TRID stands for “the reason I drink.”