So you would think with the housing market in the toilet at least people with low income would get a chance to buy a cheap home. In arizona there are plenty of houses in good condition under 75K even under 50K.
My real estate agent told me that because of the new banking regs, most banks will not write loans under 50K because there is no money in it. They can't charge what they need to make it worth their while so they have simply opted out.
Consequently the only people who are able to take advantage of these cheap houses are people who have cash (rich people).
The city of Phoenix is turning into slum lord central and lower income folks will not be able to build any wealth. They are forced to rent even though their rent is up to 3 times what a mortgage would cost if they could purchase a home.
I just checked www.lendingtree.com their participating banks will not accept any applications under 105K.
My realtor thinks its a conspiracy to centralize wealth in the housing market..not so sure about that but it is definately another crappy consequence (intended or not) of our ding bat central planners.
The little guy gets effed again.