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How common are loans today with less than 20% down?

By BayArea following x   2018 May 6, 10:36am 1,557 views   6 comments   watch   sfw   quote     share    


After the subprime lending crisis a decade ago, I was under the impression that obtaining financing with less than 20% down was fairly rare these days

I recently sold a property in the Bay Area where the highest bidder provided a preapproval letter that showed that they were approved for an amount (greater than my selling price) with only 10% down. It was a small lender I had never heard of.

I was a bit skeptical, but went ahead and accepted the offer as it was in fact the highest of many offers received.

The financing went through with 10% down (with what I assume to be a PMI)

I thought these types of loans were extremely rare in 2018?

So my question, how common are these sub 20% down loans in 2018? Who is offering them?

With the market as high as it currently is, any trigger or shake up in the economy that causes a dip in home prices can put someone with only 3.5, 5, or 10% equity to go underwater at the blink of an eye.
1   lostand confused   ignore (0)   2018 May 6, 10:41am   ↑ like (0)   ↓ dislike (0)   quote   flag        

Very common-in my circle. A lot of my friends circle bought at 5% down.
2   anonymous   ignore (null)   2018 May 6, 11:46am   ↑ like (0)   ↓ dislike (0)   quote   flag        

But I thought it was different this time. No subprime loans. How can this be? Can a house-humper please explain?
3   WineHorror1   ignore (1)   2018 May 6, 12:26pm   ↑ like (1)   ↓ dislike (0)   quote   flag        

PrivilegedtobeWhite says
But I thought it was different this time. No subprime loans. How can this be? Can a house-humper please explain?

It's different this time because homes are not being built in sufficient numbers. Housing will triple in price.
4   willywonka   ignore (1)   2018 May 6, 1:06pm   ↑ like (1)   ↓ dislike (0)   quote   flag        

They pay for a night with a “loan agent” and tickets to see AC/DC where I am from, but cash only, preferably very small bills.
5   BayArea   ignore (0)   2018 May 6, 10:21pm   ↑ like (1)   ↓ dislike (0)   quote   flag        

lostand confused says
Very common-in my circle. A lot of my friends circle bought at 5% down.


What lenders?
6   Strategist   ignore (2)   2018 May 6, 10:56pm   ↑ like (0)   ↓ dislike (0)   quote   flag        

BayArea says
lostand confused says
Very common-in my circle. A lot of my friends circle bought at 5% down.


What lenders?


FHA. It's not for the BA.


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