California Community Builders’ Post

Where new homes are being built, according to NAHB The share of newly constructed single-family homes started in community associations rose for the first time in three years in 2023, staying near historically high levels. For mortgage lenders, properties in these organizations, which can include homeowners associations for single-family homes as well as condos, come with their own issues. Delinquent HOA dues in a number of states are considered a superior lien to a mortgage when it comes to a foreclosure. At the same time, when it comes to condos, secondary market rules on lending on those properties have tightened since the Surfside disaster. Research from the National Association of Home Builders found 64.8% of all single family properties constructed last year were in a community or homeowners association, up from 62.6% in 2022. This is the third highest level ever; the record level of 67.1% was set in 2020, while No. 2 was the following year at 65.5%. As measured in units, 601,558 homes were started in community associations during 2023. Continue reading... https://lnkd.in/gkju_76X

Fannie Mae has announced an increase in the area median income (AMI) limits, a change that promises to extend the availability of more favorable loan terms to a broader spectrum of borrowers. While the increase is modest, it is a positive step forward in supporting homebuyers who may have previously been on the cusp of qualification for more affordable financing options. As real estate professionals, you are aware of the challenges that come with securing financing, especially for those whose incomes are not aligned with the median figures in their areas of interest. This adjustment by Fannie Mae is designed to encourage homeownership by making it more accessible. It is a recognition that even small increments in eligibility can have a significant impact on the ability of individuals and families to invest in a home of their own. The real estate market is ever-evolving, and staying abreast of these changes ensures that we can provide the best service and advice to those we serve. This news may be particularly heartening for lower-income borrowers, and I am optimistic about the positive effect it will have on their journey towards homeownership. I will copy a chart with some of the counties we operate in most frequently below. Please feel free to reach out if you have any questions or would like further information on this update. Our continuous collaboration and shared knowledge are what make the real estate community strong, and I am confident that together, we can leverage this change for the benefit of our clients.

AARP's Revelations Through Data series with NationSwell explores the economic and social roles of older adults in the United States, debunking commonly held misconceptions and unearthing surprising facts. The final article of the series examines increased mortgage use among homeowners age 65-plus during 2000 – 2022. Our findings underscore the pressing need for policies and practices that promote an equitable mortgage market and foster affordable homeownership and economic security for every generation. Read the article at https://lnkd.in/e2kGxz8i #longevityeconomy #housing #olderadults

The Urban Institute blog "Local Housing Data Are a Critical Tool for Building Black Wealth" highlights our 2023 report "Small-Dollar Mortgages: The Role of Small-Dollar Mortgages in Detroit’s Housing Market". Read more: https://lnkd.in/gNpBP8XA

According to The Boston Foundation, 26% of all homeowners in Greater Boston are cost burdened, meaning they spend over 30% of their income on their mortgage. If you look at just Black households, however, that figure increases to 38%.    Black households in Boston are half as likely to own a home as white households, and those that do are cost burdened at disproportionate rates. During Black History Month and throughout the year, it is important to acknowledge racial disparities seen across the US in all sectors, including housing, and continue to work towards equity.     Read more in Boston Globe Media: https://lnkd.in/eqwS5axs #homeownership #housing #housingaffordability #costburdened #BlackHistoryMonth #equity 

Solving homeownership inequities and disparities requires a comprehensive, holistic approach to rebuilding a more equitable system—from making the mortgage process fair and unbiased to extending down payment assistance programs to borrowers impacted by discriminatory housing practices. Read more about the current disparities in homeownership and how New Markets Tax Credits (NMTCs) are one tool to bring more affordable for-sale housing to underserved communities: https://lnkd.in/dCZytyiM #homeownershipmatters #housing #housingmarket #newmarketstaxcredits #nmtcs

Last year, we partnered with The Futuro Media Group and Futuro Investigates to explore mortgage discrimination in New Jersey for Latiné families. The report uncovered what many of our families know and experience all too personally - they are routinely discriminated against and denied a chance to own a home. It isn't just that Latiné families were denied at higher rates, but that banking institutions and lenders routinely engaged in illegal practices to facilitate discrimination. Even accounting for variables like credit scores, debt-to-income ratios, and loan amounts, the disparities persisted with very little accountability or recourse. Gloucester and Burlington counties see the widest gaps with respect to mortgage approvals between White and Latine families, with Union, Essex and Mercer counties not far behind. Latiné are projected to make up 70 percent of first-time homebuyers in the next two decades (!!). This is even as housing disparities rest on deliberate policy choices (redlining) to exclude Black and Latine families from certain neighborhoods. It is indicative of a need to re-examine our housing policies and the ways predatory lenders continue to target marginalized communities. This is a must-read and must-list podcast - narrated by the incomparable Maria Hinojosa and Peniley Ramírez!

Mobile home parks often come with negative stigmas and the belief that they are undesirable places to live. This couldn’t be further from the truth! In 2019 Harvard’s Joint Center for Housing Studies reported that 47% of people who rent in America are “cost-burdened”, meaning they spend more than 30% of their income on housing. That proportion increases to 83% when looking specifically at low-income renter households. Meanwhile, the amount of low-rent housing (costing $800 per month or less) fell by about four million units between 2011 and 2017. As a result, manufactured housing has become “one of the few sources of naturally occurring affordable housing” in the country, according to a recent study by Fannie Mae, the Washington-backed residential mortgage agency. While most residents in these communities still make less than $50,000 a year, they include all sorts of people — from retired teachers and social workers looking to downsize and still live in the same community to snowbirds looking for a cheap part-time property in the Sun Belt, to new immigrants and younger people who need more space than they can afford in places where the jobs are. Want to learn more about investing in this resilient asset class? Click here to schedule a call with us: https://lnkd.in/gNJsATN2

I know the authors don't write the title, but this is fundamentally wrong. I agree that one effect of post-2008 mortgage reforms was that it became much more difficult for the marginal borrower to get a loan and that this regulatory hurdle is at the heart of the falling homeownership and the rise of corporate SFRs which are largely engaged in financial arbitrage between the the would-be homeowners and wall street lenders. But it's not the driver of the affordability crisis. It can't explain rising house prices at the low end of the market (it's blocking buyers). Rents--even for units that are not close substitutes for a single family houses--are way up. This is, fundamentally a housing supply problem. Looser underwriting will push up house prices, just like it did in the run-up to the great recession.

Some baby boomers are finding homeownership to be less beneficial The New York Times profiled challenges faced by older homeowners, questions whether ‘aging in place’ means they could be ‘stuck in place,’ and takes reverse mortgages into account. Even homeowners who have paid off their mortgage may be finding that their available equity is not enough to downsize, according to a story published Saturday by The New York Times. The article also notes that reverse mortgages are a potentially valuable tool for seniors in the current housing environment. Roughly 80% of older adults live in the homes they own, but housing costs and interest rates have combined to create a challenging scenario for some older people seeking to downsize into a more manageable home. The prices for smaller townhouses or condominiums can, in some cases, outweigh the prices for larger single-family homes. #BabyBoomers #AginginPlace #RetirementFears #ReverseMortgage