Is Zero Downpayment history? (loans, interest rate, real estate, credit score)
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Anybody knows any lender that is still lending with low/no downpayment? I am interested in conventional loans. Looking for loans with interest rate under 8%. Thanks.
Why is it that people assume that a low or no down payment is wrong? The truth of the matter was not the down payment but the way it was sold by mortgage brokers and real estate people who knew better.
These so-called deadbeat homeowners were scammed while the people on Wall Street were passing out bonuses and patting each other on the back.
BTW, most banks now require 28% down and a bank balance to cover all costs for six months. Isn't that wonderful? Just how many qualified buyers does that leave a housing market that is fat with houses in a dead economy with no sign of relief?
Home Addict,
I believe there are still programs where one can get a home with little or no money down. They are usually state run programs like rural development. The one I am thinking of requires buying a home in a designated area, and that the buyer be a first time homebuyer in that state, and have very good credit.
Generally there is also a very competitive interest rate. VA is another if you qualify.
Why is it that people assume that a low or no down payment is wrong? The truth of the matter was not the down payment but the way it was sold by mortgage brokers and real estate people who knew better.
These so-called deadbeat homeowners were scammed while the people on Wall Street were passing out bonuses and patting each other on the back.
BTW, most banks now require 28% down and a bank balance to cover all costs for six months. Isn't that wonderful? Just how many qualified buyers does that leave a housing market that is fat with houses in a dead economy with no sign of relief?
Home Addict,
I believe there are still programs where one can get a home with little or no money down. They are usually state run programs like rural development. The one I am thinking of requires buying a home in a designated area, and that the buyer be a first time homebuyer in that state, and have very good credit.
Generally there is also a very competitive interest rate. VA is another if you qualify.
VA and FHA are the only place to find loans these days without needing at least 10% down, and our OP wants a conventional loan.
Last edited by Green Irish Eyes; 09-18-2011 at 02:14 PM..
Reason: Deleted off-topic comment
LovesMountains, you're quickly becoming one of my favorite posters on CD. Somebody with common sense and knowledge is nice to have around here.
It WASN'T just the sleazy practices of the mortgage industry that caused the problem - the zero and near-to-nothing down programs created homeowners who had no investment in their home from their own pocket. No reason to stay if the house decreased in value - which so many of them did. They were often (almost always?) people who didn't have a down payment because they couldn't manage their own money enough to save up the down payment. And people who can't budget and handle money should really not be owning homes. (they often make great tenants, however).
LovesMountains, you're quickly becoming one of my favorite posters on CD. Somebody with common sense and knowledge is nice to have around here.
It WASN'T just the sleazy practices of the mortgage industry that caused the problem - the zero and near-to-nothing down programs created homeowners who had no investment in their home from their own pocket. No reason to stay if the house decreased in value - which so many of them did. They were often (almost always?) people who didn't have a down payment because they couldn't manage their own money enough to save up the down payment. And people who can't budget and handle money should really not be owning homes. (they often make great tenants, however).
Well, thank you very kindly - I just call 'em like I see 'em
The value and importance of a downpayment, a stake in the biggest purchase most of us will ever make, should never ever again be underestimated.
We are all paying the price now for the banking industry's greed and ignorance when that was common practice
While all this may be true, it's not the focus of the OP's question. So let's please stick to the question asked:
Quote:
Originally Posted by Home Addict
Anybody knows any lender that is still lending with low/no downpayment? I am interested in conventional loans. Looking for loans with interest rate under 8%.
We purchased a home back in 2005 for 700k, with 300k downpayment. Market value is now 500k. Even though we are able to refinance down (thank goodness we still have 20%), we are in a so-so school district while we lost 200k of our savings.
We could purchase a home in a good school district for 800k, but we'll need to sell our current home and put down another 80k. I am not sure we want to risk extra capital after the precipitous drop in home value.
In fact, if we could pull that 100k equity out of our current house, we would. It is just not safe...
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