Ventura Real Estate: Don’t forget about first-time homebuyers !

by Gary and Lisa Schoeffler on April 28, 2011

in Latest News

As federal regulators have proposed a 20 percent down payment requirement for many borrowers to secure a home loan, let me be positive. This is a great idea — in fact it might be low — for speculators and investors purchasing residential real estate. Those in this market segment are sophisticated, willing and able to take risks. They can weather the unexpected.

Even at 20 percent down, speculators may consider walking if they purchase preconstruction homes or condominiums and cannot close before interest rates climb so high they cannot cover their monthly cash flow. The difference between them and everybody else is that they can handle the losses. They are the first in to purchase presales in a good market, and the first out when the market goes south.

But the first-time homebuyer is the bread and butter, the base, the market segment that needs the help. Nothing down is not the answer. Neither is 20 percent. And for too long they have been set to fail if things did not go as planned. Mortgage to the max, then refinance to the max, so the lender keeps making money on those fees and points.

We agree, there needs to be some middle ground or special consideration for the first-time homebuyers. It is hard to enter the market for the first time, we’ve all been there. Buying your first home is the first step to your financial future, you need to get in on solid footing.

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Post by Gary and Lisa Schoeffler

Gary and Lisa Schoeffler are Ventura Real Estate Professionals specializing in residential real estate. Their expertise in helping both buyers and sellers is widely recognized in Ventura County. How can they assist you today? Wondering what the market is like? Call them, they will be happy to talk with you about it. 805-320-4472

Gary and Lisa has written 371 articles.

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