It didnt flow very well, but i tried thats a lot for me. Thats a lot thats thats your entire resume! Well, hey flops! Hey you had a tv show if that happens, how many of us can say that not many uh, so what i want to talk about is we ended episode number two. I want to talk about first time, home buyers. I believe they are a critical part of the market. I believe getting on the property ladder is um, one of the best ways to be financially healthy later in life. Yes, im a huge believer of it, so i know you have a lot of experience with. First time homebuyers, so why dont we just talk about that market first and then well, go over go into some things i think are changing sure i mean i think this segways perfectly off of our last video about how terrible it is to be a tenant right Now, yes, and so, if you can get somebody into their first property thats, i dont use this often, but it truly is its life changing. Absolutely. It really is no question and then, by the time theyre ready to move on to their next property. They can keep their first one as a rental property, and then they can start having some passive income and all that good stuff. But you have to actually make that first leap and thats, terrifying and people are afraid of it and its been really hard lately, because you cannot play in the market earlier, like april, oh yeah, youre a first time home buyer, you just your offer, was getting overlooked.
You know if youre fha and back of the list had just a little couple thousand dollars down and you didnt have any money to cover a low appraisal and you werent willing to sign over your first born child. Your offer was being tossed in the trash um, and so you were telling me something that i didnt know. So you should share this as well here with a new program thats coming out, yeah, so im a huge believer and first time homebuyer its. Why i added house hacking to my course and self management things of that nature, but one of the most important things is getting its its not its, not even availability of homes, its getting a guess answer from a bank thats tough right, first time home buyers, often Dont have the the longest track record of credit uh. They may have a light file because theyve been paying rent right. They dont have these extras. So one of the things that i Music as its written im, a huge fan – and that is what fannie mae and freddie mac – are updating their systems. Right now its going to go live, i think september 14th or 15th is they will now consider rent payments 12 months of rent payment against the credit file. So i like this so much i went out and did extra research because my mortgage broker brought it to me. We talked about it, matt the mortgage guy blah blah blah, but what i did is i went further because im like that sounds hard.
Do i got to give them access to my bank account? What like i was like yeah i was like im, not sure i want the government looking at my stuff right im, not a big fan of that. So what i did whats going to happen is youre going to submit a credit file as normal to this automated system, because its all automated now right its going to come out and say mortgage eligible, which means a yes or its going to come out. No, so right now, if the answer comes out, no, in your first time home buyer, the system is going to say if we looked at 12 months of credit, uh rent payments and there were 12 on time payments. Would that change a no from a yes? So its awesome, so what fanny and freddie did? Is they estimated a six month, history of no answers and they found that 17 of the nos would become yeses im like awesome, right, thats, a good thing, because youre still cr yours credits still strong its a more complete file. I would say: 12 months of rent payment is one of the best indicators for home ownership. I know home ownership is more more more things i get it, but i love this idea. Me too thats. Amazing, yes, theres nothing more heartbreaking than when you have someone who has saved up a down payment and theyre ready to buy and theyre in the position to buy like their lease is about to be up, and then they get declined and having this little push.
Even if its only 17 percent of people thats a lot actually yeah its almost a fifth youre right, i didnt think of that yeah, its almost its almost a fifth yeah and again what i like about this is you dont have to give access to your bank Right because thats, why i got nervous im like hmm whats going on, so what will happen? Is you get a? No? They will run this alternative algorithm if it comes back. Yes, theyre going to ask for 12 months of statement, so youre going to send them the file or the ach or, however, rent is collected right, theyre, going to okay, theyre going to validate and, more importantly folks, if youre a renter out there theyre going to tie Those payments with your application right, your application up front, is going to say how much you pay for rent and if you lie theyre going to know right. Oh, i only paid 1200 if it comes back, paying 15 or whatever it is, or the other way theyre going to know, and that will be an automatic decline uh but yeah. I like this, its not intrusive its uh, its extra steps but yeah, even if its 10 but yeah 17 go from node to yes, im great, i think thats a wonderful thing, i think so too, and that will help get a lot of people out of the Tenant year after year after year, exactly right on the edge right now, its its a wonderful sorry, is that me thats me, sorry, its okay, i barely have it.
My daughter is um. She gets a face time from grandpa every sunday morning. Oh thats awesome its really cute and its um, its grandpa, that has quite a few grandkids and he just goes through the line. That is awesome. I can tell hes going through the line, but its so cute because he does like hell. He makes the effort to facetime each of his grandkids. So folks, if youre, watching this and youre a grandparent, do yourself a favor. Stop watching this video go call your grandkids yeah yeah, what the heck yeah and its really cute, because he wont be on like hes hes, a man, so you know he can only handle so much yeah be two or three minutes yeah before hes, like hey great Um yeah so, but its just its really cute and she gets she gets a kick out of it and she expects it every sunday, and that is awesome. She thinks its really funny that he you know wants to like she get its like kind of. Like i dont know, do you remember getting mail when you were oh yeah, of course, yeah its kind of like i feel like its the todays main one version of getting mail its like? I got something really. That is awesome so folks, again, if youre a grandparent call your grandkids, they love it so back to first time home buyers. The other thing i want to talk about is we talked about this.
I think six months ago, um in episode two, we talked about higher taxes coming if youre an owner, but on the other side i believe one of the things thats going to come out of this budget. Reconciliation is a first time home, buyer kind of credit or something that gives them down payment money somewhere between 10 and 25, grand its probably going to be the end number, and i believe this administration is going to focus on first time, home buyers and theyre going To give away some money – and i think thats going to you know you do that plus you know 17 better chance of getting a yes. All of this means, i think, the next year or so of being a first time homebuyer. You got a shot because again, remember episode: 2, all those landlords are going to be kick people out which hurts tenants, but its going to help first time home buyers. Yes, because there will be more supply for this little window of time. Yeah, because those are the type of homes that they would be buying its its the size, its the bedrooms bathrooms, it meets all the things and yeah. I think that would be a really good use. If you know the government wants to give money away, i think itd be really good use to do it in the form of a grant for down payment assistance. I agree great and i think that that ended up working out um pretty well when they did do down payment assistance and i think it worked out great yeah.
I think it. It is a very different time. I mean when i hear things like this. My initial data side of me goes: do they not freaking know we only have 1.3 million homes available and we should have three. Why the hell? Are they adding more demand? But i think we might. We might get lucky and marry up a a rush of supply because again were missing the low end of the market. Mom and pop landlords are going to be pissed off 10 10 to 20 going away. Theyre gon na you know be putting on right when the first time home buyers come so it might work out for everyone yeah yeah. Well, if they, i guess, were gon na, have to see how long the evictions and the property cleanups take before those start hitting our market. So i wonder if theyll hit the end of this year or the beginning of next uh, well, lets just play it out. Right there are states out there where evictions. Just again all evictions across the country are going to be backed up for a while right. If youre in an area where eviction was, you know, call it three weeks its probably going to be six weeks now, just its because of the supply yeah, the pipes, not any bigger right, you just yeah, no yeah, so i yeah. I think i think what is it lets call it september. Oh its going to be tight late november early december yeah its going to be next year.
Then i think for the lions share yeah. I think the big wave is next year, but which is perfect because thats, probably when the program comes up yeah. Actually that would be perfect if they could figure that out. That would be one really well. No, they wont figure it out. Itll be a complete accident. Just come on theres no figure out or planning, and this is freaking happy accidents. Laughter. Oh thats, hilarious, oh man, but you know what. If it helps first time home buyers become able to be players in our market. Again, i think its beautiful and i love to see it and thats one of my most emotionally rewarding experiences is being able to work with first time homebuyers. I love it and even though ive been in the in the business for a while, i still i was told when i was um newly getting my license to never um get mad at a first time, homebuyers question yeah and never forget how exciting these things are. Like all these firsts um, and so i think that ive really taken that to heart and i truly do enjoy the entire process, i love all the questions. I love the excitement, i love helping them get through uncertainty. I love helping people make a good decision and i love seeing them eventually become successful and move into their first home thats so cool. I love nothing more, so id love to be a part of many more of those in 2022.
yeah me too. I love seeing it again. The only reason um i am where i am today is because my parents bought a house in the 70s um. You know that and we never moved right. That was that was just it um. But one thing i do want to say id be remiss because again ive been buying since the early 2000s. I saw the the the run up in the crash up close and personal. We cant have first time home buyers get yes answers that simply dont qualify right. Yes, i love what theyre doing with the credit. If you can add rent and you get 17 get yeses instead of nos awesome, but if you include it and we get a hundred percent thats just going to end badly again, what did we learn? Last time we had i laura last time i declined renters because of poor credit, poor income they bought homes, no lets just say that did not end well yeah. They defaulted within the first 90 days, im sure and they lived there for two years: yeah yeah. So again, folks, uh theres, nothing like being a first time home buyer helping get in, but i want them to stay in the people that lost homes in 0809. Their kids are hurt right, their kids saw mom and dad get foreclosed on and they will likely not ever buy again home ownership is awesome. Getting on the proper leaner is awesome, but they got to stay there getting a home for two years and then losing it.
Not cool doesnt feel good yeah, it doesnt feel good, and i think part of that too is like how much you qualify. Somebody for yeah, you cant, drop that we got to make these qualified loans. We cant just we cant, just wave our arms and say everybody deserves a home, well thats, not how the system works yeah, because it doesnt work out great for anybody, including them. Well, it worked out great for me because property values would go up. I would sell again – and i would just wait for the aftermath, but i dont want that. It was too painful yeah, it was painful, it was painful to watch, but youre 100 right, but this is exciting these. This is good news too, because again those people were pushed out of our um buying pool yeah in april and may, and so if we can bring them back and help out some people who would otherwise be looking to become tenants again. Yes, in an already bad place to be as a tenant, then yes lets do it. I cant wait thats exciting. It is exciting. Well laura. How can people follow you be part of your world? I am on instagram, laura morby no spaces, and my phone number is 480. 717. 2070.