Down Payment Amounts
I am overly surprised at how badly the Media and Journalists misrepresent the Real Estate Market. Especially in these difficult times when people are looking for the real answers, the news continues to report things that are either false, or extremely misleading.
My wife was reading the April issue of Minnesota Monthly Magazine, which has a huge cover story on “What’s Your House Worth Now?”
Obviously housing is a hot topic for media outlets to do stories on, and I’m always interested to see what kind of spin they put on things. The article is somewhat informative on the housing issues that people want to know about (Foreclosures, Short Sales, Prices, Interest Rates, etc.). However, one little snippet cuaght my eye, here’s the quote:
Many buyers are being asked to 15 to 20 percent down. If you’ve got a decent credit score, however, you’ll probably be able to put down less.”
That makes it sound like the majority of buyers in the market today are putting 15-20% for a Down Payment on a house, and a small number are putting less than that down, if their Credit is good.
The bottom line is that FHA minimum down payment is 3.5%, and most of the first time buyers I have worked with are going this route. The interest rate is different depending on how much you put down, but most people will take a slightly higher monthly payment versus coming up with $20-30,000 in Cash for a Down Payment.
FHA Loans are back in a big way, and most buyers are taking advantage of the lower down payment in these tough economic times.
All I can say is that if you read a Magazine that does NOT specialize in the field, don’t believe what they say.
Related Posts
If you enjoyed this post, please consider to leave a comment or subscribe to the feed and get future articles delivered to your feed reader.
Comments
No comments yet.
Leave a comment