In theory, this should be a great time to buy a home. Prices have dropped some 30 percent on average across the nation since their peak in 2006, and interest rates have hit historic lows.
But while this is still considered a “buyers’ market,” people looking to get into new homes are running into some serious obstacles. Lenders are coming up with new restrictions that are making it difficult for buyers to get financing.
“Clearly, the financial regulators are looking over lenders’ shoulders a lot more than they were four or five years ago,” says Paul Bishop, vice president of research at the National Association of Realtors. “But to a large degree, lenders are also trying to avoid getting burned again.”
Click here to read the full article …
