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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: bentway who wrote (158644)	10/20/2008 2:40:34 PM
From: Jim McMannis	Respond to of 306849

Homebuilders Give Money, Credit Training To Homebuyers seekingalpha.com Mortgage rates are rising, and could choke off whatever recovery is in the works for the housing market. But homebuilders with in-house financing agencies are still offering mortgages to whoever qualifies (because before they offered to those who didn't?) Homebuilders are even going so far as to hold workshops, seminars and employ counselors who work professionally with potential homebuyers to improve their credit status and hopefully get them to succeed in buying a house. Bailout Pushes Mortgage Rates Up. “Freddie Mac: The average interest rate on a 30-year, fixed-rate mortgage this week hit 6.46%, up from 5.94% last week… The biggest weekly jump since 1987… National Association of Realtors: Home sales nationally have increased as prices have declined. But escalating mortgage rates are eroding some of the growing affordability that has come from dropping home prices, say economists such as Joel Naroff of Naroff Economic Advisors.” (USA Today, Oct. 20) Builders Help Buyers to Help Themselves. “Homebuilders are working with potential buyers, enrolling them in programs that address everything from credit-report errors to managing debt, in order to raise their credit scores so they can qualify for a mortgage or a better interest rate… Debt Resource USA, which uses certified credit counselors and works with builders such as Hovnanian Enterprises Inc. (HOV) and M/I Homes Inc. (MHO), has seen business triple since it started 18 months ago. Hovnanian, an industry trailblazer when it rolled out credit-enhancement programs nationwide last year, has more than 100 enrollees. D.R. Horton Inc. (DHI) offers a free credit-improvement program called Home Buyers Club, which assists with credit coaching and analysis and monthly disputes.” (WSJ, Oct. 18) Biggest Homebuilders Can Loan You Money - If You Qualify. “Homebuilders in southern New Jersey - including K. Hovnanian Homes, Ryan Homes (NVR), Lennar Corp. (LEN) and Siracusa Homes - have had mortgage money available to qualified buyers without interruption for the past two years [through] their financing divisions… Dan Klinger, president of K. Hovnanian American Mortgage: There is plenty of mortgage money available and lenders are still competing with each other to write loans. The difference now is that mortgages are being done by the book, according to criteria that until the start of this decade were followed for nearly every mortgage written.” (Press of Atlantic City, Oct. 15)