- $500 gift certificate toward a complete shower or bathtub, wall and fixtures installation from Bath Fitter.
- 4-ft Handcrafted Oak Glider from The Wood Shoppe
- $500 Gift Card from BI-LO
- Complete set of outdoor furniture from BI-LO
- Two pallets, plus delivery, of sod of your choice from Carolina Fresh Farms
- $500 Massage/Reflexology package from Greenville Natural Health Center
- $500 Acupuncture Treatments package from Greenville Natural Health Center
- $500 Facial package from Greenville Natural Health Center
- $500 Gift Certificate from Grout Works
- CuddleBag (color of your choice) from AV Innovations
- InSinkErator Evolution Pro Compact Disposal from InSinkErator & Gateway Supply
- Gerber 1.28-Gallon Flush Avalanche Toilet from Gerber & Gateway Supply
- Kohler Wellworth 1.28 Gallon Flush Toilet from Kohler & Gateway Supply (One awarded each day of the show.)
- Grohe Showerhead from Grohe & Gateway Supply
- Brizo Faucet from Brizo & Gateway Supply
- Ten $100 Shopping Sprees from Jeff Lynch Appliance & TV Center awarded throughout the show.
- $25 Gift Certificates for purchase of a Kohler product of $50 or more from Gateway Supply Greenville. (One awarded each day of the show.)
Friday, February 18, 2011
Tuesday, February 15, 2011
What we in the affordable housing arena have known for a long time is suddenly being realized by the rest of the world. The Housing Crisis is not a failure of housing policy over the past 30 years that was designed to give an opportunity and access to housing finance to qualified under served and under represented Americans. We in the industry recognized early on that the key to successful homeownership initiatives was not just access to capital but financial literacy and homebuyer education.
So, it appears that housing may in fact NOT be the cause of the housing crisis. What the data is now starting to reveal is that Americans are drowning under non housing debt.
There was a time when 30/36 meant something not just to banks doling out loans but also to consumers. 30/36 represents what is known as front and back ratios in the lending world. The front ratio is the proportion of a borrower’s income that lenders will allow for principal, interest, taxes and insurance (PITI) on a property. Thus an affordable mortgage is one in which a household is not spending more than 30% of their gross annual income on housing payments. The back ratio is the proportion of a borrower’s income that lenders will allow for PITI plus other monthly debt obligations (car payments, student loans, credit cards, etc.). Lenders in days past would not extend any additional credit to you if your total debt to income ratio exceeded 36% of your gross annual income.
The Calculated Risk blog points to an alarming statistic from the latest Home Affordable Modification Program (HAMP) report. As shown in the table above, the median borrower who received a permanent modification had a back-end debt-to-income ratio of 77.5 percent before the modification. That means 77.5% of their gross income is spent making debt payments! Even after receiving the modification, this ratio drops only to 61.3 percent, which is still a large burden to sustain and could continue to lead to more foreclosures.
The question has been asked and we will gladly answer that the challenge to modifying more delinquent borrowers through the HAMP program is that many households actually have an affordable mortgage with a front ratio of 31% or less thus making them ineligible for the program. Most Americans did not buy more house than they could afford…they bought more stuff in addition to their homes that they could not afford. The question then becomes what is the lifeline for those drowning under non housing debt. Unfortunately, for far too many Americans that lifeline seems to be bankruptcy court.
So, it appears that we housing enthusiasts have come full circle…financial literacy, homebuyer education, and most importantly debt management may be the keys to unlocking the housing crisis door and preventing us from ever going down this path again in the future.