Many people who already have a mortgage cannot qualify for a second one. Millions of people have 6%+ mortgages and cannot qualify for a refi for various reasons.
Many others have no chance of qualifying.
Anyone with a recent foreclosure or late mortgage payments in the past year cannot qualify either.
20% down has not been the only option. I bought my first property in 1980 with 10% down.
FHA has become the new subprime lender by allowing 3.50% down but charging a funding fee to do it.
They are losing billions…
The % of the population that can get a loan today is probably the lowest % in a long time if not in history.
I believe that 10% should be the minimum requirement. 20% would result in lower home prices.
I would rather have a market with 20%+ down and deal with qualified buyers.
I’m not interested in making money off of ignorant people.
I have told plenty of people that they couldn’t afford to buy a house. If they ended up with a FHA loan it wasn’t from me.
