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Not really... these days 20% downpayments are the norm. I know several people holding off purchases because they simply don't have downpayment. Higher home pric
by sytelus 9y ago
Not really... these days 20% downpayments are the norm. I know several people holding off purchases because they simply don't have downpayment. Higher home prices reduces number of potential customers but right now we have so many of them that reduction doesn't matter and margines are much higher on higher end.
- planteen 9y ago80-10-10 loans are quite popular right now from talking with friends.
- scarface74 9y agoFHA loans are easy to get and the down payment required is 3.5%. Even with mortgages that don’t qualify for FHA it’s relatively easy to get 5% down payment loans.
- prostoalex 9y agoThey generally require PMI, so still an extra payment out of pocket, are usually hard-capped at 30% of buyer’s current income, and take looong time to close compared to strong cash offers with conventional loans, so sellers view them as last-resort. It’s possible, but not very realistic for an FHA applicant to outbid everyone else on price.
- scarface74 9y agoYou can get prequalified for an FHA loan just like any other loan. Everyone doesn't live in SV where houses go so fast you're constantly having to outbid people.
- prostoalex 9y agotaprun's comment was describing a competitive market "potential buyers can get huge loans at very low rates. Since buyers compete with each other, prices go up".
- deadmetheny 9y agoThat isn't even remotely true here in the Midwest, in my experience. Nobody I know has needed 20% down - most have been 5% or so. I got a conventional with 5% down with no problems. It's even easier if you go the FHA first time home buyer route.