Share of ‘Equity-Rich’ Homeowners Drops to Lowest in 5 Years as Underwater Mortgages Rise
Homeowners who purchased homes with little or no money down are now struggling to stay above water.
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Realtor.com News reports that the share of equity-rich homeowners has fallen to its lowest level in five years, while underwater mortgages are on the rise. The report notes that homeowners who purchased homes with little or no money down are now struggling to stay above water. This marks a significant shift in the housing market, eroding the financial cushion that many property owners have relied upon in recent years.
For investors and borrowers watching this unfold, the landscape has changed. Equity erosion among traditional homeowners signals tighter conditions ahead, and that creates a different set of requirements for financing. loantrust.ai operates directly in this space, structuring loans around property cash flow rather than personal income through DSCR programs, offering bridge and fix-and-flip financing for value-add opportunities, and providing bank-statement programs for self-employed borrowers. Each file is packaged by one licensed MLO rather than routed through a call center, which means the financing strategy is built around the specific deal and the specific borrower.
This matters now because the margin for error has narrowed. When equity cushions thin, the quality of the financing structure becomes more consequential, whether the goal is acquiring a rental property, repositioning a fix-and-flip, or bridging a construction timeline. A dedicated partner rather than a transactional call center becomes the difference between a deal that closes with terms that fit the project and one that does not.
Source: Realtor.com News, “Share of ‘Equity-Rich’ Homeowners Drops to Lowest in 5 Years as Underwater Mortgages Rise”. Read the original →
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Hans Michel, Mortgage Loan Originator, NMLS #2857209 · LoanTrust is a dba of RentAssure Inc. · Licensed in Georgia · NMLSConsumerAccess.org · Equal Housing Opportunity. Nothing on this site is a commitment to lend — all loans subject to underwriting and approval. DSCR, fix & flip, bridge, new construction, multifamily, and bank-statement programs are business-purpose loans for investment properties only.