Sales for first time homebuyers are going down. It’s really difficult for these folks. FHA does 50% of these loans and their underwriting requirments are so strict that few can get appoved. In addition, the csosts for FHA loans are increasing which is also pulling some people out of the game.
Lastly, all cash investors are overbidding. They are accounting for 20% of all the home sales in the first time home buyer’s market.
Do you have suggestion as to what should be done to help these people?
