Entrepreneurs Can’t Count on Equity for Loans
Entrepreneurs can no longer count on what used to be a primary source of start-up funding — home equity.
“As the big guys are doing better, people ask, why not the smaller firms? Well, this is a huge part of the reason,” says William Dennis, Jr., a senior research fellow at the National Federation of Independent Business in Washington, D.C.
Owners who can tap into home equity are unable to borrow as much as before. Even business owners who want to rely on existing business properties as collateral are being rejected for loans.
“The value of the commercial building and the home — the combined net worth of the business and the owner — has been reduced, so collateral becomes more important in order to make sure that it’s in line with the loan,” says Kathie Sowa, a commercial lending executive at Bank of America.
Source: The Wall Street Journal, Emily Maltby (04/15/2010)
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Home prices see sharp dip.
A new government report reveals declines that are steeper than usual – even for this market.By Les Christie, CNNMoney.com staff writer
NEW YORK (CNNMoney.com) — Home prices continued to plunge in November, according to a new government report released Thursday. Full story.
Front Gate Properties, We’re selling the BEST Real Estate in Aiken, SC.
Materials costs are plunging, and contractors are begging for work. Suddenly that long-postponed remodel is looking like a smart idea.
Money Magazine: Home renovations on sale
If you’re struggling to see a silver lining in the beaten-down real estate market, consider this one: It may be a rotten moment to sell your house, but if you’ve postponed a much needed renovation project on your home – replacing a rotting deck, repairing a leaky roof or updating an antiquated bathroom – now just might be the best time in years to tackle that task.
Front Gate Properties, We’re selling the BEST Real Estate in Aiken, SC.
Low rates not enough?
CNNMoney: Mortgage applications dip despite low rates
NEW YORK (Reuters) – Applications for U.S. residential mortgages slipped from lofty levels last week as homeowners slowed refinancings ahead of expected federal action to lower housing costs, an industry group said on Wednesday.
Could it happen to me??
CNNMoney: Protecting your home’s value
Foreclosures can affect the value of your property even if you’ve been paying your mortgage faithfully. Here are some ways you can protect your home’s worth if your area is hit hard by foreclosures.
Mortgages…now what??
Mortgage rates tumble to record low
Refinancing activity rises to highest level since boom year of 2003
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Rates on 30-year fixed-rate mortgages fell to a record low for the second straight week, causing refinancing applications to surge to the highest level in more than five years, a month after the Federal Reserve pledged to channel billions to prop up the sinking U.S. housing market. While homeowners around the country are taking advantage of historically low rates to refinance their loans, the opportunity isn’t available to those with poor credit or little equity in their homes, and foreclosures are still likely to surge. |
