{"id":18304,"date":"2021-01-04T12:44:14","date_gmt":"2021-01-04T12:44:14","guid":{"rendered":"http:\/\/www.anthonydidonato.net\/wordpress\/?p=18304"},"modified":"2021-01-04T12:44:14","modified_gmt":"2021-01-04T12:44:14","slug":"costs-are-shutting-buyers-out-of-many-low-priced-homes","status":"publish","type":"post","link":"https:\/\/www.anthonydidonato.net\/wordpress\/costs-are-shutting-buyers-out-of-many-low-priced-homes\/","title":{"rendered":"Costs Are Shutting Buyers Out of Many Low-Priced Homes"},"content":{"rendered":"

Costs Are Shutting Buyers Out of Many Low-Priced Homes<\/h1>\n
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As home prices surge, some areas are offering pockets of affordability with several homes under $100,000. In fact, in November, there were about 50,100 single-family listings priced at $100,000 or less across the country, according to realtor.com\u00ae\u2014often low-priced properties located in smaller to mid-sized cities or in nearby suburbs and rural areas.<\/p>\n

But buyers are struggling to snag one of these affordable homes as lenders pivot toward more financially rewarding transactions.<\/p>\n

Realtor.com\u00ae explains that it\u2019s typically not profitable for lenders to execute small-dollar mortgages or loans, defined as those that are $100,000 or less. Buying trends during the pandemic have made it even more difficult to receive a small-dollar mortgage. Lenders are focused on larger, more lucrative loans, which are surging due to low mortgage rates.<\/p>\n

\u201cIt may be more difficult than ever for borrowers to get a [more modest] loan,\u201d Nadia Evangelou, a senior economist and director of forecasting at the National Association of REALTORS\u00ae, told realtor.com\u00ae. \u201cThere\u2019s such a high demand for high-dollar loans.\u201d<\/p>\n

Purchase loans are up 26.3% annually. The average purchase loan was $376,800 during the week ending Dec. 18. That is nearly four times more than a small-dollar loan. In 2019, only about 8.9% of all mortgages made for owner-occupied homes were less than $100,000.<\/p>\n

Small-dollar loans can be more expensive for lenders to make. \u201cThe cost to originate [loans] keeps going up,\u201d Steve O\u2019Connor, senior vice president for affordable housing initiatives at the Mortgage Bankers Association, told realtor.com\u00ae. Lenders may even lose money on making smaller loans, particularly those below $50,000, because of the added fixed costs, including appraisals and processing and underwriting fees.<\/p>\n

Some programs are being created to help make small-amount loans. For example, the MicroMortgage Marketplace\u2014created by the Urban Institute and the Homeownership Council of America and lender Fahe\u2014offers small-dollar loans through a pilot program that they hope to roll out nationally.<\/p>\n

\u201cThere is a lot of affordable housing out there, but if you don\u2019t have the financing and you can\u2019t get the mortgage and you don\u2019t have the cash on hand, [you can\u2019t] get on the road to homeownership,\u201d Sheryl Pardo, a spokesperson for the Urban Institute, told realtor.com\u00ae.<\/p>\n

Meanwhile, investors are swooping in to purchase these low-cost properties in all-cash deals since they\u2019re able to bypass financing. The homes then often become rental properties.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n

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Source:<\/div>\n
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\u201cLots of Homes Under $100K Are for Sale, But Most Buyers Can\u2019t Get One for This Reason<\/a>,\u201d realtor.com\u00ae (Dec. 30, 2020)<\/div>\n
\u00a9National Association of REALTORS\u00ae
\nReprinted with permission<\/span><\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Costs Are Shutting Buyers Out of Many Low-Priced Homes As home prices surge, some areas are offering pockets of affordability with several homes under $100,000. In fact, in November, there were about 50,100 single-family listings priced at $100,000 or less across the country, according to realtor.com\u00ae\u2014often low-priced properties located in smaller to mid-sized cities or … <\/p>\n

Continue reading<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[16,8],"tags":[5,32,4,9],"class_list":["post-18304","post","type-post","status-publish","format-standard","hentry","category-news","category-real-estate-tips","tag-anthony-didonato","tag-news","tag-real-estate","tag-tips","item-wrap"],"yoast_head":"\nCosts Are Shutting Buyers Out of Many Low-Priced Homes - Real Estate Agent and Sales in PA - Anthony DiDonato Broomall, Media, Delaware County and surrounding areas in Pennsylvania<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.anthonydidonato.net\/wordpress\/costs-are-shutting-buyers-out-of-many-low-priced-homes\/\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"admin\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/www.anthonydidonato.net\\\/wordpress\\\/costs-are-shutting-buyers-out-of-many-low-priced-homes\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.anthonydidonato.net\\\/wordpress\\\/costs-are-shutting-buyers-out-of-many-low-priced-homes\\\/\"},\"author\":{\"name\":\"admin\",\"@id\":\"http:\\\/\\\/www.anthonydidonato.net\\\/wordpress\\\/#\\\/schema\\\/person\\\/964792b6994e8cc4cbddc36ad4824908\"},\"headline\":\"Costs Are Shutting Buyers Out of Many Low-Priced Homes\",\"datePublished\":\"2021-01-04T12:44:14+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/www.anthonydidonato.net\\\/wordpress\\\/costs-are-shutting-buyers-out-of-many-low-priced-homes\\\/\"},\"wordCount\":437,\"publisher\":{\"@id\":\"http:\\\/\\\/www.anthonydidonato.net\\\/wordpress\\\/#\\\/schema\\\/person\\\/964792b6994e8cc4cbddc36ad4824908\"},\"keywords\":[\"Anthony DiDonato\",\"News\",\"Real Estate\",\"tips\"],\"articleSection\":[\"News\",\"Real Estate Tips\"],\"inLanguage\":\"en-US\"},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/www.anthonydidonato.net\\\/wordpress\\\/costs-are-shutting-buyers-out-of-many-low-priced-homes\\\/\",\"url\":\"https:\\\/\\\/www.anthonydidonato.net\\\/wordpress\\\/costs-are-shutting-buyers-out-of-many-low-priced-homes\\\/\",\"name\":\"Costs Are Shutting Buyers Out of Many Low-Priced Homes - 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