Smalltownbanker

Calling a Housing Bottom

Myth # 1: Mortgage money is not available.

Reality # 1: Mortgages are readily available to "qualified buyers".

Myth # 2: 20% downpayment is required.

Reality # 2: 100% financing is still available for low to moderate income borrowers and reasonably priced homes.

Myth # 3: Housing bubble was caused in large part by subprime lending.

Reality # 3: The housing bubble was caused by widespread speculation on perpetual increases in real estate value without evr seeing market corrections. When the market corrections occurred the subprime house of cards fell apart.