What's killing the American Dream of homeownership for first time home buyers?

Let's see you can own cheaper than you can rent, interest rates are the lowest in 50 YEARS, and home prices are ridiculously affordable.

So why aren't more first time home buyers buying? Obviously the state of the economy is causing many families to think twice about the purchase of their first home, but how can anyone make an informed decision with all the misinformation being spread by the disconnected mainstream media and the so-called experts?

As first time home buyers it can be hard to separate fact and fiction.

Let's take a look at some recent "expert analysis" and compare it to what's really going on in most markets.

First there's this gem from the brain trust at Trulia.com:

“Today, many banks are actually less enthusiastic about approving residential mortgage applications, which has dragged out the home buying process,” he added. “Until a middle ground on lending practices can be met, many highly-qualified buyers may be forced to be renters by choice for now.”

The truth: There are dozens of loan programs for first time home buyers and they don't have to be "highly qualified". They do have to prove they can and will repay the lender (Hardly a "less enthusiastic" guideline)

And then this from the National Association of Realtors:

Walter Molony, a spokesperson for NAR, fingers tight underwriting practices as another suspect culpable for the upswing in rentals. Lenders have only been willing to lend to creditworthy buyers.”

What's with those lenders? They only want to lend to people who will pay them back! Imagine that?

(Thanks to MReport for the "insights" from these "experts")

I don't know about other real estate markets but here's what's really going on in the Southern California Real Estate market, particularly Riverside and San Diego Counties.

• First time home buyers can get ZERO down financing with credit scores as low as 580

• First time home buyers in all of California can move in for as little as 1% with a credit score of 640

• Even non first time home buyers can move in with as little as 1/2% with a credit score of 640

• First time home buyers in Riverside County can get up to 20% in down payment assistance with a credit score as low as 600

• Veterans can still buy a home with ZERO down with credit scores as low as 600

• There is still a TAX CREDIT for first time home buyers in Riverside and San Diego Counties

The talking heads in Washington and the media haven't got a clue about the solution to the housing problem.

The solution will come from the bottom up not the top down.

If we can find ways to put more first time home buyer families in homes who want to and CAN make their mortgage payments (Yeah, that's important!), we'll work through the "shadow inventory", and won't be turning our neighborhoods into "detached apartments" by selling foreclosed homes to investors.

P.S. Did you know there are at least 10 programs available in our market to help first time home buyers purchase with little or no money down?

I would love to hear your comments, and feel free to share.