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Shrinking pool: First-time buyers battling loan requirements

November 27, 2012 @ 10:27 am

First-time homebuyers are a shrinking pool, making up less of the housing market.

Typically, they represent about 40 percent of buyers, but today their numbers have dropped to about 31 percent of buyers, according to housing data by the National Association of Realtors.

First-time buyers are the only group of buyers whose share of home purchases has not increased over the last five months, CNBC reports.

FHA mortgages, with low downpayment requirements, are a popular choice among this group of buyers, but the recent rise in FHA mortgage insurance premiums is hampering purchases.

Some sellers are also even refusing to accept offers from first-timers that include FHA financing, real estate agents report.

First-time buyers also face steep competition when targeting lower priced properties. Investors have flooded the market, snagging lower priced properties in all-cash deals that first-time buyers would typically be drawn to.

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Comments (3)


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  • Concerned US Citizen wrote...
    FHA LOANS
    November 28, 2012 7:56 am
    What we actually expect people who borrow to buy a house actually be credit worthy enough to pay the mortgage? Fannie and Freddie loans already cost us taxpayers billions and now we are on the hook for all the billions in bad loans at the FHA.NO MORE BAILOUTS!!!! Raise the credit standards for loans!!!
    { "Thumbs Up":"1","Thumbs Down":"-1" }
  • Snout wrote...
    Didn't we learn from our mistakes?
    November 28, 2012 9:02 am
    Geez, I don't care what that lickspittle Barney's Frank and his ilk wants. People need to be held to book when it comes to government backed mortgages or any loan for that matter. Look at the value of your home and ask yourself why you voted to keep the same morons in office who throw our money at poor credit risks, dodgy enviro-schemes, etc, etc.
    { "Thumbs Up":"1","Thumbs Down":"-1" }
  • murr wrote...
    It called being accountable.
    November 30, 2012 2:13 pm
    And everybody want more regulation ????? Ahhhhhh to make life more even, so we can all be the same. You know whats that called
    { "Thumbs Up":"1","Thumbs Down":"-1" }
  • { "Thumbs Up":"1","Thumbs Down":"-1" }