For many people, the decision between renting or buying a home is often based on the affordability of one avenue over the other. Due to falling home prices, studies have shown that buying a home is more affordable than renting in 98 out of 100 United States cities that were examined.
Unfortunately, for some, rising rent prices have made it difficult for some buyers to save for a down payment on a home. While this is usually the largest hurdle to home ownership, some programs are available for Buyers who have less than the average 10% down payment required by some lenders. While not all Buyers may qualify for these programs, or may feel that the additional insurance paid is not worth the smaller down payment requirement, indicators show that lending requirements might be loosening.
According to reports in January of 2012, the housing crisis is predicted to come to an end this year due to loosening of credit requirements by mortgage lenders. Reports have shown that lenders have increased lending amounts compared to Buyer earnings, and loan to value ratios are increasing as well. These indicators show that banks are more willing to lend money for homes, making it easier for qualified buyers to make purchases.
With less restrictions to lending, and the ability to buy a home for less money than renting, this truly is a time to buy!
Information obtained from: http://www.mortgageloan.com/buying-now-cheaper-renting-9037 and http://www.dsnews.com/articles/housing-crisis-to-end-in-2012-as-banks-loosen-credit-standards-2012-01-24?utm_source=twitterfeed&utm_medium=twitter