Yesterday the Pew Research Center published an article:
showing the middle class in our country is now NOT the largest class of people in this country. To be considered middle class your average income would need to be between $42,000.00-$126,000.00 for a household of three. In 1971, 62% of the American public was considered middle class, today the number is down to 43%. The only good news out of this report is that we have a higher amount of Americans now above middle classes standards prior to 1971. However, we have more people getting left behind. How can we still help all Americans who want a piece of the American Dream (home-ownership)?
Well one option is for HUD to fix an ongoing issue with FHA financing. With more millenniums coming out of college with debt and few good paying jobs, a lot of people are rethinking home-ownership. Most Americans do not want to rent. The American dream is still real. It is the affordability that hampers this dream. Having 1st time home buyers purchase condominiums could be a huge move in making the dream of home ownership possible. However financing a condo can be a nightmare for 1st time homebuyers. How do you get a condo buyer financed when they have limited financing options. Well HUD you could take a look at fixing the draconian condo process that FHA puts condo communities through to use this loan product. HUD finally made some changes to the process thanks to the pressure of NAR
but this is just not enough. I believe the process should be very similar to conventional guidelines. If lenders had an easier process to finance condo's, we would have more buyers that could afford a property. As HUD admits that they must do more to fix this issue it couldn't come at a better time.