FLORIDA — Feb. 11 (FreeRateUpdate.com) – I’m referring here to the majority and not the minority. Last year – 2009, Mortgage Originators here in Florida muddled through the remains of sub-prime borrowers that moved to refinance, modify or purchase down to more affordable homes. This year, the borrowing landscape has changed again. 
Currently, our focus is and will be on prime borrowers. This is the group of borrowers that represents individuals closest to being mortgage ready.
What we are now seeing are more effects caused by the current economic crisis. Incomes are lower, credit reports are tarnished and debt load is much higher on applications made by this year’s borrowers – so far. Finances are also taking its toll on marriages… and we are now seeing more mortgage applications made by people who are recently divorced. This list goes on BUT, I don’t want to paint a grim picture here. There IS a silver lining.
Housing inventory seems to be lowering and the New Borrowers are becoming more educated. We are seeing “First Time Home Buyer” seminars popping up and Mortgage Companies offering classes to help people protect their credit. I’m noticing churches offering more classes on personal money management. And, financial firms like mine are offering Mortgage Alternatives. These are just some of the good things that are now happening to help combat the bad.
We are also seeing for the first time in a long time, real estate investors re-entering the market. This is some more good news as it will directly affect the housing inventory number itself. When this number goes down… home values go up!