Though the market has been suppressing these loans for quite some time, it looks like opportunitiesare opening up for new homeowners at this point in time. While the last couple of years have left a lot of underqualified mortgage seekers wanting, they now have a chance to make their case with lenders.
Statistics indicate that lenders are more likely to to provide new homeowner loans now because of the fact that there is more liquidity now. Banks have more money to lend, as the rates for bank to bank loans have stabilised some. In the past, they were handcuffed and they couldn't afford to give loans to people without a substantial credit history. Now, lenders are competing with each other for these new homeowners, so they are willing to provide more offers to people who might not have previously qualified.
So how does this new homeowner loan trend impact the market? It is certainly good for the economyin general, as more money is going to be pumped into the previously struggling real estate market. As long as the new homeowners come through on these loans, the lenders will benefit greatly and everyone will win in effect.