Chris Clothier of Memphis Invest makes a worthy suggestion:
First-time homebuyers aren’t the only ones struggling to get financing. The small real estate investors with whom they compete for starter homes and distressed sales face limits imposed by lenders and federal regulators that are tougher than what owner-occupants have to deal with.
“Federal lending policy makers have an opportunity to speed up the housing correction and increase neighborhood stabilization programs without having to commit any more tax payer funds. The data shows very clearly that if they were to raise the limits that they have imposed on investor purchases with FNMA and Freddie Mac, while simultaneously raising the criteria to qualify for those raised limits, they could spur real estate investors to take action in larger numbers and much faster,” said Chris Clothier of Memphis Invest.