What is going on with down payments, do buyers have to make larger down payments?
What is going on with down payments, do buyers have to make larger down payments? Recently I was interviewed by an Internet Mortgage website and they asked me this question. So I figured I will give you my answer here. This had me wonder how would your answer been different from mine?(http://www.mortgagerates.com/real-estate/qa-with-endre-barath/)
My Answer was, tha the reality is there are still VA loans and FHA 3.5% loans out there and buyers and sellers are entertaining offers with Pre-Approval Letters. These types of loans are not prevalent in the Greater Los Angeles’s Affluent parts of town such a Brentwood, Hollywood Hills/Sunset Strip area, Beverly Hills Post Office area or Bel Air. The down payments are more 10-20% of the purchase price in the higher end market.
Congress is in the process of changing the down payment to 20 per cent of the Purchase Price of homes across the board. This is detrimental to the fragile economy as well as the fragile real estate market. Historically people always had a hard time coming up with the down payment for a home and family and frugal lifestyle allowed them to scrape up the down payment. Keep in mind that was based on an average home price of $45,000, now imagine an average home of $250,000. Do the math and you tell me how many people have 20% of that number in their savings account? If the politicians get their way they will create a worse situation than what we are in today. So anyone reading this should contact their local politicians and let them know, that this is not good for them nor for the country.
If you are a consumer who is considering buying or selling a home, investment real estate, vacation homes, or beach properties in Southern California, Los Angeles, Century City, Westwood, West Hollywood, Beverly Hills, Culver City, Marina Del Rey, Venice or Malibu. Feel Free to give me a call at 310.486.1002 or email me at email@example.com or visit one of my websites at https://www.endrebarath.com Your Pet Friendly Realtor. I contribute a portion of my commission to Local Animal Rescue Organizations