Tight Credit Stymies Would-Be Home Buyers

The latest figures from the Houston Association of Realtors shows a solid rebound in the local housing market. But with credit as tight as ever, many would-be buyers are finding the dream of owning a home still out of reach.

Houston’s housing market bottomed out in June of last year. It’s been rising steadily ever since.  Shad Bogany is broker/owner of ERA Bogany Properties.

“The success that we’re having is despite the banks, despite the credit lending. The pendulum has swung. It was so far over to the right at one time, where people were just giving loans away. Now it’s swung so far to the left, where even the simplest things are being over-documented.”

Bogany says first-timers are having the toughest time getting loans. But he says even experienced buyers with perfect credit are hitting a wall.

“I just had an issue with a client of mine putting 20% down with an 800 credit score, and his bank is still giving him [a] hard time.”

Bogany says a strong job market is driving the demand for housing by attracting new residents to the city.

Bio photo of Andrew Schneider

Andrew Schneider

Business Reporter

Andrew Schneider joined KUHF in January 2011, after more than a decade as a print reporter for The Kiplinger Letter...