According to an article by Krista Franks, it looks like there might be some hope in the lending industry. Two factors are contributing to a rosier outlook in 2012; more consistent lending standards based on credit scores and increasing loan to value ratios. What does this mean to the average buyer? It means stable lending standards and loosening of credit availability.
Average credit scores needed to qualify for a home loan have hovered around 700. Although that is higher than before the housing crisis it is consistent with a year ago. Potential buyers now have a better understanding of the score needed to achieve home ownership.
Also, LTV (Loan to Value) ratios are going up in the lending industry. Since the bottom of the crisis the LTV has crept up 8% from 74% to 82%. It allows you to buy a house that better suits your family's needs.
These factors show some great signs for buyers in the market, that couldn't acquire property based on previous strict guidelines.
However, we are not out of the woods yet. Experts say the credit loosening will not be significant enough to translate into house appreciation just yet and Europe's ongoing difficulties still pose a threat to future credit availability.
Kela GannonRealtorMaui, HawaiiPhone: 808-221-9715Agent Page: http://www.bpghi.com/kela-gannon/