Here is something that comes up very often with my customers… The mandatory 20% down payment!!! It is still anchored in the people minds. HOWEVER, it is not a requirement anymore. Banks are now offering many options for buyers. The 3% down-payment is getting more and more accessible to buyers.. as well as only 8 to 12% depending on the customers…
FHA used to be the way to get a loan with little down-payment. NO MORE!
Banks are now offering their own “low down-payment” mortgages to appeal to home shoppers struggling to save enough to buy a home. For instance, Wells Fargo made headlines when it debuted its 3 percent down payment loan very recently.
JPMorgan Chase also announced its new option. It’s called the “Standard Agency 97%” program, a 3 percent down payment loan geared for first-time home buyers and requires a FICO score of 680. Chase also has a loan program called “DreaMaker Mortgage,” whichoffers a 5 percent down payment – 3 percent of which can come from the borrower as well as flexible funding options for closing costs and reduced mortgage insurance requirements.
Other banks have recently announced their low down payment offerings. Earlier this year, Bank of America began offering a 3 percent down payment loan, with a minimum of 660 credit score, that did not involve the Federal Housing Administration and does not require mortgage insurance.
Conclusion: For loans below the “JUMBO” amount of $417,000 , Banks have now created several options. They have taken all the complexity of the home mortgage lending process and made it easy for consumers.
QUICK UPDATE ON THE MARKET: The Atlantic hurricane season is underway with two named storms already in the books, are you ready for it?
Despite the positive rebound of the financial market over the past few months, our real estate market activity didn’t show a major increase of activity. On a yearly basis, from April 2015, we see a 3.8% increase on the average sale price and a 7% shorter time on the market.