Real Estate WEALTH Magazine Real Estate WEALTH Magazine - DOWNLOAD IT HERE! - Page 31

2017. Buyers are shopping, investors are hunting for deals, sellers are listing high, and real estate and mortgage professionals and businesses are injecting masses of capital into new marketing campaigns to claim a share of the action. The general consensus is that this flurry of confi- dence and activity will carry the market through the majority of the next four to eight years and beyond. LENDING CAPS The rise of property values and transaction activity may only be hindered by access to credit and affordabil- ity. President Trump has been very vocal about easing the ability to lend and borrow, specifically for home buyers and small businesses. A return to the ‘good old days’ of easy sub-prime lending might be welcomed by many. Yet, banks and big funds have already established new channels for putting capital to work, and avoiding the risk of direct consumer lending. They are currently far happier loaning to real estate investors than retail home buyers, and that’s showing up in underwriting and mortgage approvals. Some investment property lenders are again offer- ing 100% financing and stated income loans. That’s a combo most home buyers may have to wait a little longer for. Meanwhile Fan- nie Mae and Freddie Mac have public- ly announced that they intend to loan billions this year, as they blow through lending caps, thanks to exemptions for ‘affordable’ housing projects. Hopefully the powers that be will be able to gracefully maintain balance > Continued on pg. 122 PAGE 31 • 2017