Thursday, October 22, 2009

Housing Market Still Tough But There is Hope


Posted by Kenny Hernandez

Even though there has been a lot done to try and remedy the housing market, there are still impediments for potential home buyers. One big impediment is college loans. With skyrocketing cost of higher education, debt for young Americans is also seeing an increase. Furthermore, more and more students are seeking graduate degrees which also adds to the quantity of college loans accrued. With this amount of outstanding debt, many college graduates will refuse to take on more debt by taking out a mortgage.

However, there is still hope. There have been measures taken by the government to try and remedy the situation. Unfortunately, some of these measures have not been beneficial to everyone. There is a 3.5% down payment for most of the affordable government-backed home loans and a lot of people can not afford to make this payment due to the turbulent economic times. Nevertheless , there are certain areas in the country that have affordable housing. In the Detroit, Michigan area there are many places that are very affordable and in some cases selling at 10% of their appraised value.



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