"There is a continuing need for lenders, Realtors, consumer groups and government to educate consumers to their options" when it comes to financing a home, said Franklin Codel, head of mortgage production for Wells Fargo Home Mortgage.
Here are some additional highlights from Codel and other panel participants in the release of the Ipsos/WFHM second annual "How America Views Home Ownership" survey in New York:
— Over two-thirds believe they need a very good credit score to buy a home, with 45% stating that a good credit score is 780, the survey found.
— The average credit score of a consumer who comes into Community Development Corp. of Long Island seeking information on buying a home is 750, said Marianne Garvin, its president and CEO. People "don't realize they are ready" to buy a home, she said.
— "The notion of desire is an emotional one and it can be irrational at times," said Cyrus Richardson, senior vice president of economics and housing for the National Urban League. The aim is to take clients from being irrational and bring them to the rational side of homeownership.
— The lack of supply of houses for sale could hurt the desire for renters to move into homeownership, Richardson said.
— There is movement in the number of people moving up the housing market chain, but that won't continue to happen unless first-time buyers come into the market, Garvin added.
— After people take the eHome online training course (which is provided by Neighborworks), they still want to have one-on-one, face-to-face counseling, said Bernell Grier, the CEO of Neighborhood Housing Services of New York City.
— Consumers need to be taught that creditworthiness is not based on a single factor, like credit score, and that they do not need to have 20% down to buy a home, Codel said.
