There have been many changes to the real estate market since the housing boom, and later crash, took place. Today people are finding that obtaining a mortgage is not as easy as it was, and this due in part to the elimination of the sub prime market. Sub prime loans were offered to people that had low credit scores, income that did not meet criteria, or needed non-traditional financing. The other issue affecting many loans is that in order for companies to make money on a market with such low interest rates, they do not lend on amounts lower than $100,000.00. This means that for many, unless they can afford a payment on a loan amount that high, they simply will not be able to get a loan.
Some types of residences that offer sales prices lower than the $100,000.00 mark would include duplexes, condos, and apartment homes. Houses in grossly affected areas can be lower than this dollar point, but the area has been affected as well making work hard to find. The market is showing glimmers of coming back, but some experts believe that it will be well into the twenty teens before it is seen nationwide. Until then, homeowners can still exercise their freedoms of acquiring a home equity loan, and having the value of their home rise the annual three percent. Until large banking policies are changed, the sub prime market will not be returned, and that means that people will need to have near perfect credit, with a FICO of 700 or higher, in order to qualify. This is a startling change from the necessary FICO of 560 to qualify for a sub prime loan in 2005.
Some of the best advice has been to continue to rent, as the market continues to decline in many areas, and be content. At some point the real estate market will come back to life, and buying will begin, but until then, save money, clean up negative credit points, and relax.