“Hi Gary. My wife and I are working to save the 20% down before we buy our first home, but it’s slow going. Is it possible to buy with less than 20% down?”
Answer:
You’re not alone in your crazy belief that you actually need MONEY to buy a home.
Financing rules have moved like the pendulum on a grandfather clock. First they swung very far one way, then very far the other.
When I started in real estate way back in 1984, 20% down was the norm. A lucky few could buy with 10% down or less with an FHA or VA loan.
Then around 2001, lenders got reckless and started loaning with zero down, at one point even loaning 125% of a home’s value.
Then after the subprime collapse and housing prices went into freefall, the loan market over-compensated and we were back to the 1984 rules.
Now that the market appears to be stabilizing, conventional owner-occupied loans are available to strong borrowers with as little as 5% down again.
Will we ever get back to zero down or 125% loans? Perhaps someday in the future when memories of the housing collapse (and our senses) have dimmed.
Get more money when buying or selling San Diego investment property.
