So I totally understand that the banks were too lenient in funding residential mortgages, but the move to the other extreme has made an all but impossible situation for many first time homebuyers eager to collect their share of the $8000 tax credit.
Many of my clients who have solid credit scores, low debt to income ratios, secure jobs and a handle on their finances are facing challenges finding suitable condos in which to make their first home. There are some crazy new restrictions like lenders requiring over 71% owner occupation (really? and this makes sense WHY?), only financing loans for buildings that are more than 4 units and now a crack-down on high-rises! What's left??? Last time I checked most urban areas had a mix of owners and renters in their condo buildings, not a new fad folks!
Let's think about this- if you have a 20 story building containing 100 units when it's time to replace the roof it's going to be a shared cost for 100 people versus the sprawling 3 story buildings containing 12 units each...you do the math. Which is a higher risk???
If we cannot find homes for the buyers who *should* be eligible to make a purchase, what's left???
Lenders need to get with the program and find a way to provide realistic financing options to these buyers. And it need to happen well before the Dec 1 deadline for the tax credit!