2 ms·

> downpayment assistance programs that go as low as 0% down. I never understood these, you still have to make payments on the total loan though? 0% on a millio

• legitster 4y ago
  You only pay the higher percentage on the amount of loan principle below 20%. So for 80% of our loan the interest rate is 2.25%, and then a few points on top of that for what we still own below the 20%. Still a screaming deal - but a lot of restrictions on how big of a loan you can get and what kind of property you can buy with it.
  • tayo42 4y ago
    ill dig into this. thanks! see theres a reason to rant on the comment section haha
    • legitster 4y ago
      Haha! Once in a million! The advice I give all my friends - talk to a decent loan officer as soon as possible. Perhaps even years before you think you are ready! The amount of knowledge you will get by Googling these topics is like looking through a straw. But a professional can lay out a bunch of options you never would have known you had.
• twelve40 4y ago
  it's obviously a huge help for people who can't easily fork out $200k in cash after tax for a downpayment. Which is only the majority of the population, even in the richest metros (e.g. SFBay has most families making less than $120k/year). As to addressing the recently raised interest rate or not flooding the demand side with cheaper loans, I have no idea how to tackle all the evil in the world at once, but this particular form of help clearly addresses the barrier to entry in form of a downpayment, which is real.