National Association for the Self-Employed – Business Benefits, Educational Resources and Access to Health Insurance for Small Businesses and Startups > How is the Housing Crisis Affecting You? (March 2008)

Respondents: 393

You can’t turn on the news or read a paper lately without hearing about the housing and mortgage crisis that is sweeping our country. In a nutshell, over the past few years the push towards home ownership coupled with subprime adjustable rate mortgages allowed many individuals who were previously unable, due to their financial situation or credit score, to purchase homes. Unfortunately, the fixed period of time they experienced low interest rates and mortgage payments has come to an end and now their interest rate is adjusting to higher, unaffordable levels forcing many to face foreclosure and/or bankruptcy. With so many of NASE’s members running their business out of their home, we wanted to find out if this housing crisis is affecting you and your business.

1. Do you currently own your home?

85% Yes

15% No

01% No Opinion

2. If yes, what type of mortgage do you currently have?

59% Fixed Rate Mortgages

18% Adjustable Rate Mortgages

00% Government- backed (FHA) loans

00% Veteran’s Administration (VA) guarantee loan

01% Do Not Know

21% No Opinion

3. Are you concerned about the ability to afford your home now or in the next few years due to the type of mortgage you currently have?

19% Very Concerned

21% Somewhat concerned

49% Not concerned

11% Not applicable to me; do not own my home.

4. Are you concerned about the value of your home and property due to foreclosures and/or the number of homes for sale in your area?

33% Very concerned

29% Somewhat concerned

26% Not concerned

13% Not applicable to me; do not own my home.

5. Who do you think is responsible for the current housing and mortgage crisis?

19% Federal and/or State Government

34% Banks / Financial Institutions

21% Mortgage Brokers

02% Home builders

10% Home owners

14% No Opinion

6. Please indicate whether you are in favor of or oppose the following proposals that have been suggested by Congress to address current housing issues.

Favor Oppose No Opinion

1. Increase funding to foreclosure and mortgage assistance programs to keep people in their homes. 51% 32% 17%

2. Change the bankruptcy laws to allow judges the ability to modify the mortgage loans on a debtor’s principal residence for homeowners who meet strict income and expense criteria. 57% 20% 23%

3. Reform and increase funding to government housing agencies and corporations such as the Federal Housing Authority (FHA) and Fannie Mae/ Freddie Mac, which could give homeowners a chance to trade in their current adjustable loans for stable, affordable fixed rate mortgages. 69% 18% 13%

4. Increase regulation on the mortgage industry. 65% 17% 18%

Survey Results

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