[quote=CA renter]From what I understand, if a borrower does not have 30% equity in an existing home, they will not qualify for a new loan; and that is a perfectly reasonable response to the actions of borrowers over the past few years.
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Is this really the case? Never heard that before. Having to quality for both payments would make sense though. I hope I don’t have to pay down to 30% before buying something bigger.
Northcounty,
It’s clear you are frustrated.
For whatever it’s worth, I’m in a relatively similar situation as yourself. I know it’s frustrating as hell, especially with a growing family.
As you are seeing, this forum has a lively mix of people. The trick is to filter out the doom and gloomers, the grumps, and the cheerleaders. In the middle of those are some really insightful people, with truly invaluable information and insight.
While nobody knows exactly what is going to happen, I would agree with the majority that the most likely outcome is that the $800k homes of today are going to be falling. The question is how fast, and how soon and that’s an answer nobody can give you.
I’d stay put or rent for another year to re-assess just that. At least that’s my plan of action.
