Homebuilders finally 'get' what concerns potential homebuyers most

May 12, 5:40 PMHousing ExaminerDena Kouremetis

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It’s not the free home theater system, or the state-of-the-art induction cooktop, or any other upgrades builders are throwing in to the deal that is getting homebuyers off the fence these days

Why?  Because a homebuilder’s lack of bells and whistles, high interest rates or even a potential drop in equity aren't what worries them. It's the prospects of losing gainful employment that looms largest in their psyches.  With the unemployment rate at a 26-year high and home sales still on the ropes, a growing number of homebuilders are looking to address that fear.

Homebuilding giants such as Pulte, Lennar and Ryland have begun offering a kind of mortgage unemployment insurance – a mortgage protection plan that can pay for all of part of a homeowner’s payment for up to six months as they look for another job.

There are some catches. Although these incentives are usually tied to using the homebuilder’s in-house or preferred lender, homebuyers can take advantage of the programs like this only if they lose their job within the first few years after purchasing the home.

It’s true that a lot of people won’t be able to find work within the six-month window period offered in these programs, and if this idea proves to become a proverbial white elephant to these homebuilders, they will no doubt have to take three steps back and punt,   But it's a start for both homebuyers and the building industry  at a time when very little lumber is being raised all over the country.