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January 5, 2009 at 3:20 PM #14755January 5, 2009 at 3:54 PM #324225EugeneParticipant
I think you’re conflating three issues. 1) Can you get a mortgage with 10% down? 2) Will the bank agree to sell you the house with 10% down? 3) Is it wise to start shopping for a house if you only have enough money for 10% down?
1) Yes, but it will be more expensive than if you put 20% down.
2) Yes, but, all else equal, the bank may prefer the buyer with larger down payment.
3) Probably not – houses are still going down – it’s possible that your house will drop 10% and wipe your down payment. Don’t spend your last dime on the down payment.
January 5, 2009 at 3:54 PM #324558EugeneParticipantI think you’re conflating three issues. 1) Can you get a mortgage with 10% down? 2) Will the bank agree to sell you the house with 10% down? 3) Is it wise to start shopping for a house if you only have enough money for 10% down?
1) Yes, but it will be more expensive than if you put 20% down.
2) Yes, but, all else equal, the bank may prefer the buyer with larger down payment.
3) Probably not – houses are still going down – it’s possible that your house will drop 10% and wipe your down payment. Don’t spend your last dime on the down payment.
January 5, 2009 at 3:54 PM #324627EugeneParticipantI think you’re conflating three issues. 1) Can you get a mortgage with 10% down? 2) Will the bank agree to sell you the house with 10% down? 3) Is it wise to start shopping for a house if you only have enough money for 10% down?
1) Yes, but it will be more expensive than if you put 20% down.
2) Yes, but, all else equal, the bank may prefer the buyer with larger down payment.
3) Probably not – houses are still going down – it’s possible that your house will drop 10% and wipe your down payment. Don’t spend your last dime on the down payment.
January 5, 2009 at 3:54 PM #324643EugeneParticipantI think you’re conflating three issues. 1) Can you get a mortgage with 10% down? 2) Will the bank agree to sell you the house with 10% down? 3) Is it wise to start shopping for a house if you only have enough money for 10% down?
1) Yes, but it will be more expensive than if you put 20% down.
2) Yes, but, all else equal, the bank may prefer the buyer with larger down payment.
3) Probably not – houses are still going down – it’s possible that your house will drop 10% and wipe your down payment. Don’t spend your last dime on the down payment.
January 5, 2009 at 3:54 PM #324725EugeneParticipantI think you’re conflating three issues. 1) Can you get a mortgage with 10% down? 2) Will the bank agree to sell you the house with 10% down? 3) Is it wise to start shopping for a house if you only have enough money for 10% down?
1) Yes, but it will be more expensive than if you put 20% down.
2) Yes, but, all else equal, the bank may prefer the buyer with larger down payment.
3) Probably not – houses are still going down – it’s possible that your house will drop 10% and wipe your down payment. Don’t spend your last dime on the down payment.
January 5, 2009 at 3:54 PM #324230urbanrealtorParticipantThats most of my clients right now.
Good credit, good pay, but low savings (like 5-10 percent).
Not always the best position to get low offers accepted but totally reasonable.
I really see the cash component come into play here when its like all cash. And that’s for reo’s.
The shorts seem to only care that they have a patient buyer (I am listing a few) and that the lender is legit.
If you have more detailed questions (like too detailed for a thread), you can also email. Its my handle at gmail.
January 5, 2009 at 3:54 PM #324563urbanrealtorParticipantThats most of my clients right now.
Good credit, good pay, but low savings (like 5-10 percent).
Not always the best position to get low offers accepted but totally reasonable.
I really see the cash component come into play here when its like all cash. And that’s for reo’s.
The shorts seem to only care that they have a patient buyer (I am listing a few) and that the lender is legit.
If you have more detailed questions (like too detailed for a thread), you can also email. Its my handle at gmail.
January 5, 2009 at 3:54 PM #324632urbanrealtorParticipantThats most of my clients right now.
Good credit, good pay, but low savings (like 5-10 percent).
Not always the best position to get low offers accepted but totally reasonable.
I really see the cash component come into play here when its like all cash. And that’s for reo’s.
The shorts seem to only care that they have a patient buyer (I am listing a few) and that the lender is legit.
If you have more detailed questions (like too detailed for a thread), you can also email. Its my handle at gmail.
January 5, 2009 at 3:54 PM #324649urbanrealtorParticipantThats most of my clients right now.
Good credit, good pay, but low savings (like 5-10 percent).
Not always the best position to get low offers accepted but totally reasonable.
I really see the cash component come into play here when its like all cash. And that’s for reo’s.
The shorts seem to only care that they have a patient buyer (I am listing a few) and that the lender is legit.
If you have more detailed questions (like too detailed for a thread), you can also email. Its my handle at gmail.
January 5, 2009 at 3:54 PM #324730urbanrealtorParticipantThats most of my clients right now.
Good credit, good pay, but low savings (like 5-10 percent).
Not always the best position to get low offers accepted but totally reasonable.
I really see the cash component come into play here when its like all cash. And that’s for reo’s.
The shorts seem to only care that they have a patient buyer (I am listing a few) and that the lender is legit.
If you have more detailed questions (like too detailed for a thread), you can also email. Its my handle at gmail.
January 5, 2009 at 5:07 PM #324289ScarlettParticipant[quote=esmith]I think you’re conflating three issues. 1) Can you get a mortgage with 10% down? 2) Will the bank agree to sell you the house with 10% down? 3) Is it wise to start shopping for a house if you only have enough money for 10% down?
1) Yes, but it will be more expensive than if you put 20% down. [/quote]
Thanks, esmith!That depends, of course, – in the sense that if one has more than 10% to put down, and if he prefers to invest some of it, instead of putting everything for a downpayment, it may actually pay off, or at least be a safer investment, in case the prices drop further (which looks almost a certainty right now).
[quote=esmith]
(…)
3) Probably not – houses are still going down – it’s possible that your house will drop 10% and wipe your down payment. Don’t spend your last dime on the down payment.[/quote]
No, I wouldn’t spend my last dime, and probably I wouldn’t be getting a good loan deal if I did. But saving another 10% down payment or 50-60K may take years and years, realistically (in my case). In the mean time, with kids, it’s nice to have a larger house & yard while they are still young. I didn’t mean that I would buy something right away, but perhaps in the next year or two – hopefully by then the prices would have reached their last/bottom leg in areas I am looking.January 5, 2009 at 5:07 PM #324623ScarlettParticipant[quote=esmith]I think you’re conflating three issues. 1) Can you get a mortgage with 10% down? 2) Will the bank agree to sell you the house with 10% down? 3) Is it wise to start shopping for a house if you only have enough money for 10% down?
1) Yes, but it will be more expensive than if you put 20% down. [/quote]
Thanks, esmith!That depends, of course, – in the sense that if one has more than 10% to put down, and if he prefers to invest some of it, instead of putting everything for a downpayment, it may actually pay off, or at least be a safer investment, in case the prices drop further (which looks almost a certainty right now).
[quote=esmith]
(…)
3) Probably not – houses are still going down – it’s possible that your house will drop 10% and wipe your down payment. Don’t spend your last dime on the down payment.[/quote]
No, I wouldn’t spend my last dime, and probably I wouldn’t be getting a good loan deal if I did. But saving another 10% down payment or 50-60K may take years and years, realistically (in my case). In the mean time, with kids, it’s nice to have a larger house & yard while they are still young. I didn’t mean that I would buy something right away, but perhaps in the next year or two – hopefully by then the prices would have reached their last/bottom leg in areas I am looking.January 5, 2009 at 5:07 PM #324692ScarlettParticipant[quote=esmith]I think you’re conflating three issues. 1) Can you get a mortgage with 10% down? 2) Will the bank agree to sell you the house with 10% down? 3) Is it wise to start shopping for a house if you only have enough money for 10% down?
1) Yes, but it will be more expensive than if you put 20% down. [/quote]
Thanks, esmith!That depends, of course, – in the sense that if one has more than 10% to put down, and if he prefers to invest some of it, instead of putting everything for a downpayment, it may actually pay off, or at least be a safer investment, in case the prices drop further (which looks almost a certainty right now).
[quote=esmith]
(…)
3) Probably not – houses are still going down – it’s possible that your house will drop 10% and wipe your down payment. Don’t spend your last dime on the down payment.[/quote]
No, I wouldn’t spend my last dime, and probably I wouldn’t be getting a good loan deal if I did. But saving another 10% down payment or 50-60K may take years and years, realistically (in my case). In the mean time, with kids, it’s nice to have a larger house & yard while they are still young. I didn’t mean that I would buy something right away, but perhaps in the next year or two – hopefully by then the prices would have reached their last/bottom leg in areas I am looking.January 5, 2009 at 5:07 PM #324709ScarlettParticipant[quote=esmith]I think you’re conflating three issues. 1) Can you get a mortgage with 10% down? 2) Will the bank agree to sell you the house with 10% down? 3) Is it wise to start shopping for a house if you only have enough money for 10% down?
1) Yes, but it will be more expensive than if you put 20% down. [/quote]
Thanks, esmith!That depends, of course, – in the sense that if one has more than 10% to put down, and if he prefers to invest some of it, instead of putting everything for a downpayment, it may actually pay off, or at least be a safer investment, in case the prices drop further (which looks almost a certainty right now).
[quote=esmith]
(…)
3) Probably not – houses are still going down – it’s possible that your house will drop 10% and wipe your down payment. Don’t spend your last dime on the down payment.[/quote]
No, I wouldn’t spend my last dime, and probably I wouldn’t be getting a good loan deal if I did. But saving another 10% down payment or 50-60K may take years and years, realistically (in my case). In the mean time, with kids, it’s nice to have a larger house & yard while they are still young. I didn’t mean that I would buy something right away, but perhaps in the next year or two – hopefully by then the prices would have reached their last/bottom leg in areas I am looking. -
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