More Americans signed contracts to buy homes in June

SILVER SPRING, Md. (AP) — The number of Americans signing contracts to buy homes rose for the second straight month after a devastating spring freeze brought on by the coronavirus outbreak.

The National Association of Realtors said Wednesday that its index of pending sales rose 16.6%, to 116.1 in June. That’s up from a reading of 99.6 in May.

Contract signings are now 6.3% ahead of where they were last year after being significantly behind last year’s pace due to the pandemic. An index of 100 represents the level of contract activity in 2001.

All four regions saw more contract signings for the second straight month. The Northeast led the way with a 54.4% increase. Sales in the Midwest, South and West all jumped around 12%.

“It is quite surprising and remarkable that, in the midst of a global pandemic, contract activity for home purchases is higher compared to one year ago,” said Lawrence Yun, NAR’s chief economist. “Consumers are taking advantage of record-low mortgage rates resulting from the Federal Reserve’s maximum liquidity monetary policy.”

Freddie Mac reported last week that average interest rates on a 30-year fixed rate mortgage rose to 3.01%. The average had been 2.98% the previous week, the first time in 50 years that it slipped below 3%. The Federal Reserve wraps up a two day meeting Wednesday and is not expected to change its main borrowing rate.

In May, the number of Americans signing contracts to buy homes rebounded a record 44.3% after plunging during the usually busy spring season as buyers and sellers were sidelined by coronavirus-related closures and regulations.

May’s recovery was the highest month-over-month gain in the index since since its inception in January 2001.

Last week, the government reported that sales of new homes jumped 13.8% in June, the second straight increase after two months when sales plunged as the country went into lockdown because of the coronavirus. June’s increase followed a 19.4% jump in May, further evidence the housing market has turned around.

Associated Press

Are New “For Sale by Owner” Sites Changing the Rules?

When home prices rise steadily over several straight years, seller’s markets crop up where demand is strongest. One of the side effects is a renewal of interest among home sellers in trying to find a way to forgo the traditional six percent commission that real estate brokerages charge. Typically, that means marketing their homes on their own.

During the current three-year old housing recovery, however, there’s no sign that more sellers are going “FSBO”, or “for sale by owner.” Since 2012, sale prices have risen about 20 percent, according to CoreLogic.[1] In several of the hottest markets like Riverside CA or Los Angeles price increase are near or exceeding 10 percent in 2015 alone.[2]


Despite the strength of the recovery, interest among home sellers in going it alone has yet to materialize. According to the National Association of Realtors’ annual Profile of Home Buyers and Sellers, only 8 percent of sellers went FSBO in 2014, fewer than in 2013 and the smallest share since the association started collecting data in 1981.[3] But a lot has changed in 35 years and NAR’s survey may not be providing a complete picture of how the Internet may be empowering consumers to reduce the fees they pay real estate brokerages.

The traditional definitions of FSBO may mask a growing trend among many sellers to do more of the marketing themselves with the help of the Internet and brokerages using newer models.

Here are a few of the new ways people are saving when selling their home:

Auctions. Foreclosure auctions were a significant part of the real estate business four or five years ago and now online auctions have become an increasingly popular way for owners to sell their homes at a good price without having to wait for months. Sites like Auction.com and Hubzu.com offer incentives to buyers to buy their next home at an auction.

Discount brokers. There is nothing new about brokerages that offer their services at rates significantly less than their competitors. Most, however, provide less service for their lower prices. Redfin is probably the best known of a new breed of brokerages that gives buyers rebates and sellers commissions as low as 1.5 percent without reducing service.[4]

Owners.com gives buyers a rebate equivalent to about 1.5 percent of brokerage fees after the closing. The rebate comes from the 3 percent commission that traditionally goes to the buyer’s agent.

Fee for service/listing on MLS. During the housing boom that ended ten years ago, demand was so strong that many owners saw no need for a real estate agent with one exception—they wanted to list their homes on their local MLS. Dozens of brokerages went into business by simply listing homes for a flat fee of $500 to $1000 and not providing other marketing services, or providing other services for fixed fees.

 New online tools. Ten years ago the first web sites and online brokerages for FSBO owners created the first listing inventories of FSBO homes and distributed turnkey tools like yard signs and brochures. Today a new breed of sites has taken FSBO tools to a new level.

Sites like forsalebyowner.com and owners.com provide sophisticated advice and unique tools to help owners value their properties and price them properly. Owners.com provides a trend tracking tool that helps owners see priding trends down to the neighborhood level.

source: totalmortgage.com

Now’s the Time to Buy a Vacation Home

The beaches are empty and the summertime vacationers are long gone. It may not be the best time to sell, but it’s the perfect time to buy that second home on the shore that you’ve dreamed about for years.

Vacation home sales jumped to a record high in 2014, according to the National Association of Realtors’ 2015 Investment and Vacation Home Buyers Survey. Vacation home sales climbed to an estimated 1.13 million last year, the highest since NAR began its survey in 2003. At the same time, the median sales price of vacation and investment homes dropped last year. The median vacation home price in 2014 was $150,000, an 11 percent drop from $168,700 in 2013.

Summertime, when the beaches are full of vacationers, is the ideal time to sell and usually that’s when there’s the most stock. The typical vacation home buyer tends to buy a property that’s a median distance of 200 miles away, and plans to own their property for a median of six years. Last year forty percent of vacation buyers bought a home in a beach area, 19 percent purchased in the country, and 17 percent purchased a vacation home in the mountains, according to the NAR study.

Buying during the off-season

Vacation-home owners often squeeze out one more season of rental income before putting their properties on the market. Many vacation homes come onto the market in the off-season because owners don’t want to pay the maintenance costs through the fall and winter when it is not used and can’t be rented out.

Depending on location, you may not find as many listings for vacation homes in the off-season, but you’re more likely to find bargains. If you are planning to rent out your property or if you expect it to appreciate as an investment, be careful. Location is critical. A block or two too far from the beach could lower your rent or appreciation.

If you’re in the market for a vacation home, here are some contingencies to think about.

• About one fourth of vacation homes are rented to other people for part of the year, and the appeal of different kinds of properties varies with the seasons. If you live far away, you’re going to need a good property management company to handle rentals for you. Before you buy, get educated about the rental market and interview management firms that will be able to do the job for you. They are local experts and can guide to the best locations and properties that for sale at a good price.
• More and more couples are buying big vacation properties with plans to retire in them eventually. If that’s an option for you, look for communities with transportation, health care, and other services important to safe senior living.
• Airbnb is revolutionizing the way many people take vacations. By becoming a host, you can stay in your vacation place all summer or rent it out through their site.

source: totalmortgage.com

What’s Your Outlook on the Real Estate Market?

So here’s a true story. Yesterday, a good friend of mine asked the following question via text message: “What’s your outlook on the real estate market…we are looking to buy a place soon.”

That’s the exact message he sent over last night; there weren’t any emoticons by the way, sadly.

I saw the message but did my best to avoid answering it for about half an hour. Then I finally cracked and responded with the following:

“In a word, overpriced. But if you really want to buy a home that’s your deal. It’s not always about the investment.”



Now in the past I may have just left it at “overpriced,” but I’ve learned that such remarks are often met with resistance. I also don’t want to ruin anyone’s grand plans.

And it’s true, buying a home isn’t just about the investment. It’s not simply about timing the market and making a killer profit, that is, unless you’re a real estate investor.

For most people it’s a home. It’s a place to live. There are reasons to buy other than turning a profit.
So my outlook has changed, or perhaps broadened, to include benefits beyond making money.

But my point was basically that it’s not an ideal time to buy in terms of investment, but it could be a great time to buy a home if there’s one you really like and want to own.

At the end of the day, if he gets the home he wants, he’ll probably be happy, even if it doesn’t double in value in five years. Even if it flat lines or drops, he’ll probably still be happy if he truly loves the home.

And over time, he’ll surely build equity and come out ahead as home prices reach new heights.


National Median Sales Price Reaches All-Time High


Yesterday, the National Association of Realtors reported that the national median sales price reached an all-time high.

The price of a median existing home climbed to $236,400 in June, a 6.5% increase from a year earlier, enough to surpass the previous peak median sales price reached in July 2006 ($230,400).

For the record, the median sales price has increased year-over-year for 40 consecutive months, so yes, home prices have been on a tear.

Home sales have also been white-hot, with existing sales hitting their highest level in over eight years (February 2007).

Properties are also being scooped up faster than ever, with the average time on market only 34 days in June, down from 40 days in May, making it the shortest amount of time since NAR began tracking in 2011.

I also got word from a real estate agent friend that new home sales are picking up again. Recently, builders were offering discounts, but now that inventory is so low, they’re increasing prices and slashing discounts.

This is basically a testament to the supply/demand imbalance that is causing home prices to keep rising, and making bidding wars a common situation.

It’s for these reasons that I don’t love the current market as a buyer. At the same time, selling isn’t ideal either because there’s a good chance home prices will continue to increase.

In fact, if you look at real prices adjusted for inflation, home prices aren’t really at new all-time highs. In today’s dollars, the median would have to be closer to $260,000.

So buying because you love a home still makes sense today, as it always will. And you’ll probably do just fine if you can afford the home and stay in it for several years.

But if I had to take a side, I’d say that home prices are bloated and the competition is fierce. That certainly makes it a lot less attractive to buy today than in the very recent past. I’m taking a wait and see approach.

source: thetruthaboutmortgage.com

Five Reasons to Buy a House Right Now

You might go back and forth on whether to buy a house. However, if you’ve been on the fence for years, now might be the right time to purchase.

Buying a home is a huge investment that can pay off in the long run. You can build equity and add to your personal net worth, plus you can enjoy predictable monthly payments and the possibility of living house-payment free in the future.

Since buying a home has become much harder in recent years, some people don’t apply for financing for fear a lender will reject their application. However, given present conditions with the housing and mortgage market, there are five good reasons to buy a house right now.

1. Mortgage Rates are on the Move

About three years ago, mortgage rates hit a new all-time low. They have increased over the past two years, yet still remain relatively low. And since the interest rate plays a role in how much you pay monthly, getting a low-rate mortgage results in a cheaper house payment and increases purchasing power. However, rates won’t remain low forever.

Some money experts predict mortgage rates will continue to increase throughout 2015. There’s no way to know exactly how much they will increase, but some experts believe rates will rise to 5.5 percent by the end of 2016.

2. Greater Inventory of Houses for Sale

The demand for housing has calmed down in several housing markets, causing prices to stabilize. And since there’s a greater pool of houses to choose from, it’ll be easier to get what you’re looking for at an affordable price.

“Inventories are at their highest level in over a year,” said Lawrence Yun, Chief Economist at the National Association of Realtors.

Additionally, some markets maintain a steady supply of foreclosures and short sales. These properties often sell below market value, so it’s an opportunity to purchase more house for your money. Just know that it takes longer to close on a foreclosed or short sale property. And in most cases, you’re buying these houses as-is, so be prepared to spend money on improvements or repairs.

3. Home Prices are Starting to Increase

Home price gains have been steady over the past couple of years, but prices are beginning to inch upwards in some areas as the housing market improves. If you’re looking to get in a property while prices are stable and affordable, now’s the time to submit your application. The longer you postpone ownership, the greater the chance homes will appreciate in value, driving up sale prices.

4. Renting Isn’t Getting Any Cheaper

Renting offers flexibility and you’re not responsible for major repairs. However, rent prices aren’t stable. In some areas, renting is more expensive than buying. Take San Francisco for example. According to Realtor.com, the average renter spends approximately 42 percent of their monthly income on rent. And nationwide, rents are rising at about four percent a year.

At this rate, an affordable apartment today might not be so affordable in just a few years. Buying, on the other hand, is the chance to lock in a fixed rate and enjoy predictable payments for the life of the mortgage.

5. Lenders are Softening their Requirements

After 2008, lenders imposed stricter credit requirements for mortgages. Some banks only approved applicants with minimum credit scores of 680 or 700. And unfortunately, this excluded many would-be homebuyers. More recently, some lenders have started relaxing their credit requirements, providing a borrower has sufficient income, a down payment and a cash reserve.

Additionally, a survey conducted by the Federal Reserve in the third quarter of 2014 says, “14 percent of banks reported an easing of mortgage loan standards.” According to the report, “banks are reducing FICO requirements, lowering qualification hurdles and helping more loans get to closing.”

Bottom Line

If buying a home is your goal, don’t give up. It’s not as easy to get your foot in the door nowadays, but it’s possible. The key is education and knowing what to expect from the lending process.

source: totalmortgage.com

Percentage of First-Time Home Buyers Drops

Numbers released recently by the National Association of Realtors show that only 33% of home purchases in 2014 will be made by first-time buyers. That may not sound terrible on paper, but it means a drop of 5% from last year, and the lowest rate in almost three decades.

But why is this happening, when talk of economic improvement and a steadying housing market is so common? The reason is three-fold. Most first time home buyers are in their twenties and thirties, the same age range most crippled by ballooning student loan debt, rising housing costs, and stagnating salaries. Combined, these factors create a generation hard-pressed to save up for down payments.

And that may not be all. According to The Wall Street Journal:

    “Beyond the issues of affordability, some renters might be putting off home purchases because of the damage they saw housing do to the last generation of buyers, said Doug Duncan, chief economist of mortgage-finance company Fannie Mae.” 

To adapt, many are instead renting with roommates or moving in with family, which creates another curious situation. According to a Zillow study, there are 5.4 million fewer households than there would be if the economy was completely recovered.


So how does all this affect you?

Unless home-ownership eludes you for the reasons outlined above, it doesn’t, at least not directly. But in all probability, this is only a symptom of a greater ill. With some worrying about a student debt bubble and others whispering about forgiving student debt, the underlying problem isn’t likely to disappear on its own, and may mean some more turbulence before the economy evens out completely.

source: totalmortgage.com

414,000 Home Sales Won’t Happen This Year Thanks to Student Loan Debt

There’s been a lot of recent buzz about teens and Millennials being extremely bullish on homeownership. And with that comes hope of a stronger housing recovery and even higher home prices in the future.

But it’s one thing to say you’re going to buy a home (or want to buy a home), and another thing to actually do it.

While ambition doesn’t seem to be lacking, the question remains whether many of these young prospective home buyers will actually qualify for mortgages.

A recent report from John Burns Real Estate Consulting noted that 414,000 home purchases would not occur this year thanks to pesky student loan debt.



Using a typical purchase price of $200,000, that equates to nearly $83 billion in lost volume for the real estate industry.

And with 5.26 million new and existing home sales expected this year, that represents about an eight percent loss in transactions thanks to costly student loans.

 Nearly Six Million Pay More Than $250 a Month on Student Loans

There are a reported 5.9 million households under the age of 40 paying over $250 per month on student loans.

That represents 35% of such households and is up from 22% back in 2005. For these households, qualifying for a mortgage gets a lot more difficult thanks to restrictive debt-to-income limits.

It’s compounded by the new Qualified Mortgage rules that limit DTIs to 43%, coupled with the fact that home prices have risen dramatically. The only thing offsetting this is the fact that mortgage rates remain historically low.

For those who can still purchase a home, it reduces their purchasing power by $44,000. So you basically need to look at a smaller home, or a home in a less desirable area.

This can get pretty tricky if the recent grad has accepted a job in a certain locale and doesn’t want to spend half their day commuting.

The prevalence of households with student loan debt also mean it’s more difficult to save for a down payment. And with the FHA becoming a lot less viable for many prospective buyers, more money is needed to get the job done.


Record Number of First-Timers Are Using Gifts to Buy Homes


Perhaps this is why 27% of first-time home buyers received a gift from relatives or a friend last year, per the National Association of Realtors.

That’s up from 24% in 2012 and matches the highest level since NAR beginning tracking in 2009. It’s apparently even higher this year.

The Realtor group also revealed that 54% of first-time home purchases were delayed in 2013 because student loan debt hurt their ability to save for a down payment.

Simply put, college students are spending a lot more money on tuition but salaries don’t seem to be rising.

In fact, incomes appear to be dropping, with college graduates aged 18 to 34 years old working full time experiencing a $3,300 drop in average annual earnings from 2007 to 2012 (adjusted for inflation), per Census Bureau data.

Factor in all the competition in the housing market that demands either a larger down payment or a higher bid and you’ve got a recipe for renting.

Perhaps the home builders will take note of this trend and start constructing more affordable housing.

Tip: There’s nothing wrong with accepting a gift from a parent or relative because a low down payment can raise your mortgage payment three different ways, which could cost you a lot more long-term.

source: thetruthaboutmortgage.com

Realtors’ Chief Economist Says FHA Loans Are a Rip-Off for Consumers

Last week, Zillow hosted its fifth housing forum in the nation’s capital to discuss current real estate matters.

The panel of reporters, real estate gurus, and policymakers discussed a number of issues, ranging from why people move to mortgage rates and affordability.

But perhaps the most controversial comment came from Lawrence Yun, the outspoken chief economist of the National Association of Realtors.

When the WSJ’s Nick Timiraos questioned whether the mortgage credit box was too tight, Yun took the opportunity to express his discontent with the FHA and its new sky-high premiums.


Are FHA Loans a Bad Deal?

He prefaced his comment by saying he might upset the lobbyists in Washington, but went ahead and said, “essentially they are ripping off the consumers,” when speaking of the FHA and its pricey premiums and fees.

Yun noted that FHA loans have historically been aimed at first-time home buyers and moderate-income buyers, so charging premiums that he refers to as “outrageous” almost warrants action from the Consumer Financial Protection Bureau (CFPB).

Sure, he was chuckling when he made that last comment, but it’s clear he’s not happy with their new premium structure, and has made it one of his priorities to whittle them back down to more reasonable levels.

The FHA has raised the upfront and annual insurance premiums multiple times over the past several years, mainly because they had no other choice but to raise capital to stay in business.

Additionally, many FHA borrowers now pay annual premiums for the life of the loan, further increasing the costs of homeownership.

That has certainly pushed the FHA loan share down in recent months, with conventional loans snagging a larger share of mortgages these days.


So When Are FHA Loans the Better Option?

In a related report from the Urban Institute, a nonpartisan think tank in D.C., the thinkers determined when FHA loans made more sense than conventional loans, and vice versa.

They assumed a purchase price of $250,000 with a five percent down payment, along with a mortgage rate of 4.29% on a conforming loan and 4% on an FHA loan.

Even with FHA premiums as high as they are today, a borrower with a loan-to-value of 95% would be better off with an FHA loan when their FICO score is below 680, as seen in the chart above.

If their credit score is above 680, they’re better off going the conforming/private mortgage insurance route.

So in that sense, the FHA is still serving that underserved portion of the population, at least with regard to low credit score and lack of a down payment.

Yes, there are borrowers who lack the necessary funds for a large down payment, but have good credit scores, and these people are essentially stuck paying more.

But that’s pretty much the consequence of having standards that were too loose prior to the housing bust. I don’t really see the FHA budging anytime soon.

A recent survey from NAR also indicated that 5.7% of originations were lost because of the higher FHA fees.

For the record, people move mainly to buy a larger home or for a new job (according to Lawrence Yun, grain of salt), and a lot of the panelists seem to think interest rates will be closer to 5% next year.

They also discussed interest-rate lock-in, which again Yun dismissed for the reasons mentioned above. Still, other panelists fear fewer homeowners will be willing or able to list their homes as interest rates rise. But only time will tell.

source: thetruthaboutmortgage.com

Know the Difference: Realtors, Real Estate Agents and Brokers

Real estate agents, real estate brokers, and realtors. What’s the difference? They all sell property, right? They’re all collecting commissions, and they all know how to negotiate deals. Why bother learning what the difference is? It’s sort of like a red house vs a blue house. They’re both houses, right? Not so fast. There are actually some key differences between all three of these designations. Knowing them might mean the difference between selling your home and keeping it for another year.

What An Agent Does

An agent is a real estate professional that works on your behalf to find you the right home. He negotiates for a price that you should be happy with, and he does not chase sales for commissions. Even though he does earn a commission on every sale, he has a fiduciary duty to make sure that you’re getting the home you need and deserve. He has a responsibility to you, the consumer.

That doesn’t mean that you shouldn’t hire another independent inspector to check out the home – even when you’re working with an agent from trusted sources, like Agent Harvest. Having a second opinion can confirm what the agent is telling you.

What A Broker Does

A broker is a real estate professional that usually has more experience. He is a senior agent with additional education and training under his belt. He’s also probably in a more managerial role at a real estate brokerage.

He may also be a specialist when it comes to certain types of property. However, real estate agents and real estate brokers are sometimes interchangeable, depending on where you live in the country. If you’re unsure whether there’s a difference where you live, ask. It’s the easiest way to clarify any misunderstanding, and it might just make the difference in how much you get for your home.

For example, if you have the opportunity to work with a broker, a senior agent, you might ge better service than from an agent (someone younger in the business). If your broker doesn’t really specialize in the types of home that you have, or the area where you live, then a broker might mean the difference between selling the house quickly and staying where you are for another year.

That’s a serious consideration, especially if you have to move because of a job relocation or you just need to sell the home to downsize or pay off debts.

What Realtors Do

Realtors differ from real estate agents and brokers in that they are members of the National Association of Realtors. This is an independent organization of real estate agents, brokers, and other real estate professionals.

It’s not so much that these people are radically different in what they do. It’s more that they may have more extensive training and they are bound by a specific code of ethics and a fiduciary duty that brokers might not have. Even agents aren’t held to the same standards as Realtors. So, choose wisely, and regardless of who you choose, always do your research. Just because someone has the education and training, or even experience, doesn’t mean they will be a good fit, personality-wise.

Phillip Waterman’s career in real estate spans decades. With a keen eye and clear manner, he enjoys writing about navigating the real estate market for today’s buyers and sellers.

source: 20smoney.com

Existing Home Sales Fall, Price Appreciation Slows

WASHINGTON -- Americans bought fewer existing homes in September than the previous month, held back by higher mortgage rates and rising prices.

The National Association of Realtors said Monday that sales of resold homes fell 1.9 percent last month to a seasonally adjusted annual rate of 5.29 million. That's down from a pace of 5.39 million in August, which was revised lower.

The sales pace in August equaled July's pace. Both were the highest in four years and are consistent with a healthy market.

Mortgage rates rose sharply over the summer from their historic lows, threatening to slow a housing recovery that began last year and has helped drive modest economic growth.

But many economists expect home sales will remain healthy, especially now that rates have stabilized and remain near historically low levels. Final sales in September reflected contracts signed in July and August, when rates were about a percentage point higher than in May.

The average rate on a 30-year fixed mortgage was 4.28 percent last week, down from a two-year high of 4.58 percent in August. That's also far below the 30-year average of 7 percent, according to Bankrate.com.

Sales of existing homes have risen at a healthy 10.7 percent in the past 12 months. Still, that's the slowest year-over-year increase in five months.

And the median home price has risen 11.7 percent in the past year, the Realtors said. That's also the slowest annual gain in the past five months.

Price increases may be slowing because more homes are finally coming on the market. The supply of available homes rose 1.8 percent from a year ago to 2.21 million, the first year-over-year increase in 2 ½ years.

The limited number of homes for sale is a key reason prices have risen so fast in the last year.

The economy is growing modestly and employers are adding jobs at a slow but steady pace. That's helped a growing number of Americans buy homes.

Still, many first-time buyers have been unable to enter the market. They made up just 28 percent of purchases in September, down from 32 percent a year ago. In healthier housing markets, they typically make up at least 40 percent of buyers.

First-time buyers are having trouble qualifying for loans because many banks have adopted tougher lending restrictions and higher down payment requirements since the housing bubble burst.

In their place, investors and Americans willing to pay cash are playing an outsize role in sales. Cash purchases made up 33 percent of September's sales, up from 28 percent a year ago.

Borrowing rates began to rise in May after Federal Reserve Chairman Ben Bernanke suggested that the Fed could start to slow its monthly bond purchases by the end of the year. The purchases are intended to keep interest rates low and stimulate the economy.

But the Fed decided against slowing its purchases at its September meeting, citing weak economic data and looming budget battles in Washington. The budget fights led to a partial government shutdown Oct. 1. The nation's borrowing limit was increased but only at the last minute. Economists have cut their forecasts for growth in the October-December quarter by about a half-percentage point because of the shutdown and debt limit fight.

As a result, many economists think the Fed won't slow its bond purchases until January or even later. That's likely to keep mortgage rates low well into the new year.

source: dailyfinance.com

Home buying tips for people over 40

LOS ANGELES - It's often the most daunting and emotionally taxing item on one's financial to-do list: Buying a home.

Most people wade into homeownership for the first time in their 20s and early 30s, when they still have the bulk of their working years ahead of them and a long runway to build equity — a key asset for eventually moving up to a bigger home.

But what if you've reached midlife and still envision buying a home one day? Tackling that first home purchase after 40 can be easier in some ways than when you're just staring out in your career, but it also brings its own set of financial factors.


"It's important to consider the financial work you have left," says Eleanor Blayney, consumer advocate for the Certified Financial Planner Board of Standards based in Washington D.C. "The financial hurdles you still have over the rest of your life and how homeownership and debt in particular are going to impact that."

A National Association of Realtors survey of people who bought a home between July 2011 and June 2012 showed that nearly 80 percent of first-time homebuyers were 32 years-old or younger.

In the next age bracket, those age 33-47, 36 percent were first-time buyers; between the ages of 48 to 57, only 19 percent were first-time buyers. The rates of first-time homeownership generally declined as buyers got older, according to the survey, which featured 8,500 respondents.

Even so, the last decade's economic downturn and housing crash has forced many to put off that first home purchase.

Here are some things to consider if you're over 40 and eyeing homeownership:

LENDING RULES DON'T CHANGE FOR OLDER BUYERS

Good news: Being closer to retirement age than someone in their 20s and 30s can't legally be held against you by a lender when they consider you for a home loan, regardless of the loan period.

"So if somebody was to walk in today, and they're 114 years old, and they ask for a 30-year mortgage and qualify for it, we have to give it to them," says Tom Jarboe, regional manager at lender Primary Residential Mortgage Inc.

The decision on whether one qualifies for a loan hinges on the borrower's income, assets, credit history and other factors.

Banks generally look back two years to establish a borrower's income history and also look to evaluate the likelihood that the borrower will continue to make the same level of income for at least another three years.

If you're in your late 50s or early 60s and disclose that you're planning to retire within three years, a lender will evaluate your projected earnings from Social Security, retirement accounts, dividends on investments and other sources.

CONSIDER BENEFITS OF PAYING OFF LOAN

Most banks operate under the assumption that even a 30-year fixed mortgage will be swapped out for another loan within eight years, if not sooner. That's because many homebuyers often end up refinancing, or moving for work or due to family considerations.

But paying off a home and owning it free and clear by the time one retires is a smart play, particularly as the cost of housing is a significant expense for a person relying on a fixed income.

That can be tougher for someone who puts off that first home purchase two decades into their prime working years, assuming they haven't saved up money to make a hefty down payment — think at least 30 percent.

But it's doable.

Blayney recommends that even older borrowers who take on a 30-year mortgage take steps to pay off the loan or lower the monthly payment significantly by the time they retire.

That could mean making extra payments during the early years of the loan, or putting up more than the minimum down payment so the borrower is financing a smaller amount. A 15-year mortgage, which typically translates into lower interest, but higher monthly payments, is another route to a quicker loan payoff.

LOOK INTO FIRST-TIME BUYER ASSISTANCE

One of the biggest obstacles to homeownership is coming up with a down payment to qualify for a loan.

Federal and state housing agencies offer assistance for first-time homebuyers, including in many cases former homeowners who haven't owned a home for at least three years. You can find a list of some programs by state at www.hud.gov .

Remember though, while some loan programs allow homebuyers to make a down payment of as little as 3.5 percent of the purchase price, experts say you'll need to save enough for at least a 20 percent down payment in order to get the lowest interest rate and avoid having to pay private mortgage insurance, or PMI.

And they can come with hefty fees and restrictions.

ASK YOURSELF IF THIS IS THE RIGHT TIME TO BUY?

You may want to own a home, but are you financially ready to take on the financial commitment that comes with a home loan?

Experts recommend borrowers consider the implications of buying a home in their later years, as well as taking on a large loan

"This isn't the situation where if you happen to time your purchase incorrectly when you're 25 and you buy at the top of the market, you still have most of your life left to recover financially," says Rick Sharga, executive vice president at home auction site Auction.com.

CONSULT WITH A FINANCIAL PLANNER

Buying a home in midlife or beyond has direct implications on retirement.

Homeownership can bring stability to one's monthly housing costs, versus rental housing, as well as tax benefits, but it also carries with it a trove of costs, including property taxes, insurance and maintenance.

A good way to evaluate all the ways buying a home, whether in cash or through financing, will affect one's retirement finances is to enlist a financial planner to go over one's retirement goals.

"You have to sharpen your pencil, sit down and do all the math," Blayney says. "There's no one answer."

source: newsday.com