Four Housing Stock Picks for A Weak Market

Last month, I refinanced my home in Charlotte, NC for the second time in three years. The last time around the financing requirements were as easy as buying a movie theatre ticket. Not so anymore.

My refinancing experience harkened me back to the days of old. First, the bank had to complete an appraisal and credit check before they would even talk firm rates and the loan-to-value (LTV) had to be less than 80%. Then, I had to give a complete financial package, with tax returns, bank accounts, etc. As I own several companies, I had to provide tax returns for them as well. I passed the test and was able to refinance at a lower rate.

Gone are the days when a new "up-and-coming" millionaire would walk into a $2 million dollar home and buy it for little or no money down. Trust me, this is a good thing for America since we have seen the repercussions of this reckless loan model. But the pendulum always swings too far in either direction and while I praise proper lending standards, some banks have gone overboard. This is clearly evident in the luxury home market, where some banks are requiring as much as 40% down in equity. This is a shock to the luxury home market and it will take some time for the shock to wear off.

On the other hand, the entry level and first time buyer seems to be fairing much better, as rates are at historic lows, deals are abundant and the government has pushed to help this home buying segment with such actions as the $8,000 first time home buyer credit. ...