M&T Bank’s Post

First-time homebuyers today not only struggle to qualify for a #mortgage, but once they do, often unfairly lose out in #biddingwars -- facing the stigma of using a #VA or #FHA mortgage! This source of financing discrimination not only limits where they are able to "win" their chance at buying a house, but it also fosters segregation. In Massachusetts, we found that in as many of 17 towns and cities in 2024, less than 1% of homes were sold with a FHA mortgage... (places like #Camrbidge, #Brookline, #Newton, and #Lexington). This stigma is largely unfounded: did you know that #FHAloans on average take around the same time to close as #conventional loans? Both around 46 days in 2024. Read the full report here: https://lnkd.in/ddiKWQpH

Thank you, Theresa Valinotti, CREV (a Reverse Mortgage Specialist), for sharing this valuable information and highlighting the potential of reverse mortgages in funding the construction of Accessory Dwelling Units (ADUs). As a general contractor specializing in building ADUs, I see firsthand the transformative impact these units can have on homeowners' lives. ADUs offer a versatile solution for expanding living spaces, whether to accommodate aging family members, create rental income, or provide a comfortable home office. Reverse mortgages present a unique opportunity for senior homeowners to leverage their home equity to finance the construction of an ADU without the burden of monthly mortgage payments. This financial tool not only supports the creation of additional living space but also enhances the overall value and functionality of the property. If you're considering building an ADU and exploring financing options, I highly recommend looking into reverse mortgages. They can be a game-changer for making your dream project a reality. Feel free to reach out if you have any questions or need guidance on building your ADU. Together, we can create solutions that enhance your living environment and add value to your property.

Interesting insights from Gary Painter, PhD, academic director of the real estate program at the University of Cincinnati. He points out that cities like Cincinnati are still affordable for homebuyers, with an average down payment of $42,000. However, the future of our affordability hinges on our ability to meet the rising demand with sufficient housing supply. Learn more about the latest market trends. #CincinnatiRealEstate #OhioHomes #CincyRealtor

Crisis Alert! A new quarterly Cost of Housing Index unveiled today by the National Association of Home Builders (NAHB) and Wells Fargo underscores the housing affordability crisis in America by revealing that in the first quarter of 2024, 38% of a typical family’s income was needed to make a mortgage payment on a median-priced new single-family home in the United States. 😥 Low-income families, defined as those earning only 50% of the area’s median income, would have to spend 77% of their earnings to pay for the same new home. https://lnkd.in/e-jkQTnB

Great news for homeowners! The average home equity rose by $20,000 (6.8%) in Q3 compared to the previous year, driven by a 9% increase in average home prices. Despite challenges like high mortgage rates, increased property values have significantly boosted your home equity – a key factor in building wealth and financial flexibility. Building equity serves as a financial buffer for emergencies and provides assets for major expenses like college fees or home repairs. While some areas, like Texas, experienced a temporary dip due to market dynamics, the overall trend is positive, especially in states like Hawaii, California, and Massachusetts, where homeowners saw substantial equity gains. What does this mean for you? If you have any questions about leveraging your home equity or need guidance in real estate matters, feel free to reach out to me or my team. We're here to help you! #RealEstateNews #HomeEquity #WealthBuilding #Homeownership #AskTheExperts https://lnkd.in/gpTthAv9

🏡 Kansas City homeowners are holding tight! Discover why in our latest article by Mili Mansaray at The Beacon Kansas City. In a market squeezed by low inventory and high interest rates, Kansas City faces unique challenges. Historically low mortgage rates during the pandemic have left homeowners reluctant to sell, while new construction struggles to meet surging demand, exacerbating the housing shortage. 🛠️ With rising costs and regulatory hurdles, what does the future hold for homebuyers and builders? Dive in to learn more about the “lock-in effect” influencing the market. Stay informed with The Beacon– your trustworthy source for local, in-depth reporting that engages community with issues that matter. #KansasCity #HousingMarket #RealEstate #LocalNews #TheBeacon

"Real-world tokenization can drive homeownership — Quarter Homes CEO Current 30-year fixed mortgage rates in the United States are close to 7%, as younger individuals struggle to purchase property. Homeownership, once an attainable dream in much of the developed world, is quickly becoming a distant fantasy for younger generations as the price of residential real estate soars and interest rates are driven to relative highs in an effort to quell inflation. Cointelegraph sat down with Shannon Diesch, CEO of Quarter Homes — a company offering tokenized alternatives to debt-based mortgage financing — to get the lowdown on how real-world asset tokenization can foster home ownership. The CEO explained that tokenizing residential real estate introduces a new equity-based model for home financing that brings together real estate investors and aspiring homeowners as equity partners in the transaction, a stark contrast from the current creditor-debtor relationship characteristic of home mortgages."... Cointelegraph read & learn more

Can't Afford a Single Family Home? Buying a 2-4 Plex Got Easier in 2023! Important #missingmiddlehousing milestone: In 2023 Fannie Mae Made Missing Middle Easier to Finance, Requiring Only 5% down on 2-4 Plex Mortgages Article Highlights: 🏡 This new option presents a great opportunity for individuals looking to invest in multifamily homes while also enjoying the benefits of homeownership. 🔎 Fannie Mae has announced that, starting from the weekend after November 18, 2023, it will accept 5% down payments for owner-occupied 2-, 3-, and 4-unit homes. This marks a departure from the previous multifamily financing requirement of 15-25% down payments for duplexes, triplexes, and four-plexes. 🔎 The maximum loan amount allowed for these 2-4 unit properties is set at $1,396,800…. 🔎 Additionally, the elimination of the FHA self-sufficiency test for 3-4 unit properties means that buyers will face fewer hurdles when seeking pre-approval for these types of multifamily homes. 💰For owner-occupant landlords, this policy shift represents a significant opportunity to reduce mortgage payments by leveraging rental income. The ability to make a smaller down payment not only makes multifamily homes more accessible, but it also allows home buyers to gain valuable landlord experience, as they have the opportunity to collect rent from other units while simultaneously building equity in their own property. Thanks Aleksandra Kadzielawski at The Mortgage Reports for this great article summarizing the change! #housingchoice #home #housing Jennifer Castenson

Are you in the game? 🏡 U.S. homeowners with a mortgage pulled in $28,000 in equity gains on average year over year in the first quarter, the highest amount since late 2022, according to CoreLogic Inc. That average year-over-year increase of 9.6% translates to a collective gain of $1.5 trillion and means net homeowner equity totaled more than $17 trillion at the end of Q1. https://lnkd.in/g-igBukt

Big news in the world of home financing! 🏠 Fannie Mae has taken one more step towards making homeownership more achievable by improving the 'best efforts commitment' in conjunction with the HomeReady program. Want to learn what this could mean for you? Check out our newest blog for the full scoop!👉 #HomeReady #FannieMaeUpdates #Homebuyers #RealEstateNews