« prev   random   next »

1
0

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

By BayArea following x   2018 May 6, 10:36am 779 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   PrivilegedtobeWhite   ignore (1)   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 (0)   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 (0)   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 (1)   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.




The Housing Trap
You're being set up to spend your life paying off a debt you don't need to take on, for a house that costs far more than it should. The conspirators are all around you, smiling to lure you in, carefully choosing their words and watching your reactions as they push your buttons, anxiously waiting for the moment when you sign the papers that will trap you and guarantee their payoff. Don't be just another victim of the housing market. Use this book to defend your freedom and defeat their schemes. You can win the game, but first you have to learn how to play it.
115 pages, $12.50

Kindle version available


about   best comments   contact   one year ago   suggestions