no loan without 20% down

[patientrenter]

Ranjan, requiring 10% down is only a very small protection for the (ultimate) lender in a non-recourse purchase loan state like CA facing major and persistent price declines. Credit scores, and wealth in other assets, mean even less. About all that protects the lenders in a market in major decline is the borrower’s downpayment, and a 10% downpayment is less than the projected one-year decline in home prices in most CA markets. It’s so small it’s a joke.

Consider this situation: Someone buys a $1 million house now with 10% down, so the ultimate lenders put up $900,000. In 3 years time the house is sold for $600,000. How do the lenders get their $900,000 back? They don’t of course, regardless of the credit or other assets of the borrower. No matter who the (non-recourse state) borrower is, the lenders get back just $600,000 less the sale expenses, and take a massive loss.

In my example, which isn’t too outlandish, the lenders would have to have received annual interest of $100,000 in excess of the Treasury rate for 3 years in order to be compensated for their $300,000 loss at the future foreclosure, ignoring their foreclosure and other costs. That’s 11.11% extra interest annually over and above the risk-free rate! Clearly, lenders still are not charging anything even close to the interest rates required to justify 10% downpayments. Before now, the lenders were all pricing in never-ending home price inflation. Now they are all pricing in huge government bailouts.

Patient renter in OC

[SD Realtor]

Patientrenter you bring up very good points.

Ranjan there is nothing “wrong” with only putting 10% down. The point that is being made is that from a market perspective, lax lending standards and risk prone financing ultimately leads to inflation of the security which then leads to bubbles which produces an unhealthy market. While you may be a very responsible person the fact is that most people cannot control themselves. We are a nation of consumers who really know very little about living within our means. It is a behavior that is promoted by pretty much every entity in our society and not only encouraged but essentially rewarded by our government.

Now while pretty much everyone here frowns on people who are looking to buy now, it may be argued that we are approaching a point where low downpayments and low interest rates are going to disappear. When that will happen or if that will happen is up to speculation. It sounds like you are on the cusp of buying. If you look at past posts you should be able to dig up HLS’s email. Also your Realtor should have many broker contacts who can find loan programs that will match your needs.

Good luck!

[SD Realtor]

Patientrenter you bring up very good points.

Ranjan there is nothing “wrong” with only putting 10% down. The point that is being made is that from a market perspective, lax lending standards and risk prone financing ultimately leads to inflation of the security which then leads to bubbles which produces an unhealthy market. While you may be a very responsible person the fact is that most people cannot control themselves. We are a nation of consumers who really know very little about living within our means. It is a behavior that is promoted by pretty much every entity in our society and not only encouraged but essentially rewarded by our government.

Now while pretty much everyone here frowns on people who are looking to buy now, it may be argued that we are approaching a point where low downpayments and low interest rates are going to disappear. When that will happen or if that will happen is up to speculation. It sounds like you are on the cusp of buying. If you look at past posts you should be able to dig up HLS’s email. Also your Realtor should have many broker contacts who can find loan programs that will match your needs.

Good luck!

[SD Realtor]

Patientrenter you bring up very good points.

Ranjan there is nothing “wrong” with only putting 10% down. The point that is being made is that from a market perspective, lax lending standards and risk prone financing ultimately leads to inflation of the security which then leads to bubbles which produces an unhealthy market. While you may be a very responsible person the fact is that most people cannot control themselves. We are a nation of consumers who really know very little about living within our means. It is a behavior that is promoted by pretty much every entity in our society and not only encouraged but essentially rewarded by our government.

Now while pretty much everyone here frowns on people who are looking to buy now, it may be argued that we are approaching a point where low downpayments and low interest rates are going to disappear. When that will happen or if that will happen is up to speculation. It sounds like you are on the cusp of buying. If you look at past posts you should be able to dig up HLS’s email. Also your Realtor should have many broker contacts who can find loan programs that will match your needs.

Good luck!

[SD Realtor]

Patientrenter you bring up very good points.

Ranjan there is nothing “wrong” with only putting 10% down. The point that is being made is that from a market perspective, lax lending standards and risk prone financing ultimately leads to inflation of the security which then leads to bubbles which produces an unhealthy market. While you may be a very responsible person the fact is that most people cannot control themselves. We are a nation of consumers who really know very little about living within our means. It is a behavior that is promoted by pretty much every entity in our society and not only encouraged but essentially rewarded by our government.

Now while pretty much everyone here frowns on people who are looking to buy now, it may be argued that we are approaching a point where low downpayments and low interest rates are going to disappear. When that will happen or if that will happen is up to speculation. It sounds like you are on the cusp of buying. If you look at past posts you should be able to dig up HLS’s email. Also your Realtor should have many broker contacts who can find loan programs that will match your needs.

Good luck!

[SD Realtor]

Patientrenter you bring up very good points.

Ranjan there is nothing “wrong” with only putting 10% down. The point that is being made is that from a market perspective, lax lending standards and risk prone financing ultimately leads to inflation of the security which then leads to bubbles which produces an unhealthy market. While you may be a very responsible person the fact is that most people cannot control themselves. We are a nation of consumers who really know very little about living within our means. It is a behavior that is promoted by pretty much every entity in our society and not only encouraged but essentially rewarded by our government.

Now while pretty much everyone here frowns on people who are looking to buy now, it may be argued that we are approaching a point where low downpayments and low interest rates are going to disappear. When that will happen or if that will happen is up to speculation. It sounds like you are on the cusp of buying. If you look at past posts you should be able to dig up HLS’s email. Also your Realtor should have many broker contacts who can find loan programs that will match your needs.

Good luck!

[raptorduck]

Wow, the house I could buy with only 5% or 10% down. But I don’t think one should buy what a bank will “let” him or her buy. A credit card company will also “let” you run up a huge amount of debt and then watch your little teaser rate dissapper as they lock you into their “standard” high rates.

People should buy what the can buy comfortably, without worrying about appreciation and depreciation. In this market, I consider a 20% down as a break even down from an appreciation standpoint. 30% for me is ideal, which is why I am pushing my wife to buy a home at a price where we can put in 30% down from our downpayment fund. If you put 30% down, you won’t worry about the market continuing to tumble so much, particularly if you are buying a long term home and don’t look at your home as either an investment or a supply of home equity funds to fund your lifestyle.

That is why I am a buyer right now. We need a new house, plain and simple. I am keeping an eye on the market to get the best price. After I buy, well I will keep an eye on the market up here until I sell my current house, or keep it and rent it out. After that, perhaps curiousity will keep my interest, perhaps not.

We could go for 5% or 10% down and buy almost twice as much house. But the payments go up too, and even though we could “technically” afford that as far as the bank is concerned, and even though it is a long term purchase, you never know what life brings and planning for a rainy day is not a bad thing. It gets you peace of mind. There are folks I expect, who bought at the peak, and are not stressing because they put so much down, they still have positive equity.

My current home has lost 10% value in two years, but I bought 8 yrs ago with a big down. So while I wish it were worth more so I could get more $$ out of it, I am not stressed about it.

The great thing about living below your means, is that you don’t stress about money, can help those you care about when they are in financial distress, can give away a larger part of your income to charity, which adds greatly to ones happiness and sense of community, and are prepared for that rainy day or unpleasent surprise. Financial stress is a life shortning thing and interferes its enjoyment. I have been there, I remember. It was self inflicted and I realized I am not a masochist, so I stopped.

[raptorduck]

Wow, the house I could buy with only 5% or 10% down. But I don’t think one should buy what a bank will “let” him or her buy. A credit card company will also “let” you run up a huge amount of debt and then watch your little teaser rate dissapper as they lock you into their “standard” high rates.

People should buy what the can buy comfortably, without worrying about appreciation and depreciation. In this market, I consider a 20% down as a break even down from an appreciation standpoint. 30% for me is ideal, which is why I am pushing my wife to buy a home at a price where we can put in 30% down from our downpayment fund. If you put 30% down, you won’t worry about the market continuing to tumble so much, particularly if you are buying a long term home and don’t look at your home as either an investment or a supply of home equity funds to fund your lifestyle.

That is why I am a buyer right now. We need a new house, plain and simple. I am keeping an eye on the market to get the best price. After I buy, well I will keep an eye on the market up here until I sell my current house, or keep it and rent it out. After that, perhaps curiousity will keep my interest, perhaps not.

We could go for 5% or 10% down and buy almost twice as much house. But the payments go up too, and even though we could “technically” afford that as far as the bank is concerned, and even though it is a long term purchase, you never know what life brings and planning for a rainy day is not a bad thing. It gets you peace of mind. There are folks I expect, who bought at the peak, and are not stressing because they put so much down, they still have positive equity.

My current home has lost 10% value in two years, but I bought 8 yrs ago with a big down. So while I wish it were worth more so I could get more $$ out of it, I am not stressed about it.

The great thing about living below your means, is that you don’t stress about money, can help those you care about when they are in financial distress, can give away a larger part of your income to charity, which adds greatly to ones happiness and sense of community, and are prepared for that rainy day or unpleasent surprise. Financial stress is a life shortning thing and interferes its enjoyment. I have been there, I remember. It was self inflicted and I realized I am not a masochist, so I stopped.

[raptorduck]

Wow, the house I could buy with only 5% or 10% down. But I don’t think one should buy what a bank will “let” him or her buy. A credit card company will also “let” you run up a huge amount of debt and then watch your little teaser rate dissapper as they lock you into their “standard” high rates.

People should buy what the can buy comfortably, without worrying about appreciation and depreciation. In this market, I consider a 20% down as a break even down from an appreciation standpoint. 30% for me is ideal, which is why I am pushing my wife to buy a home at a price where we can put in 30% down from our downpayment fund. If you put 30% down, you won’t worry about the market continuing to tumble so much, particularly if you are buying a long term home and don’t look at your home as either an investment or a supply of home equity funds to fund your lifestyle.

That is why I am a buyer right now. We need a new house, plain and simple. I am keeping an eye on the market to get the best price. After I buy, well I will keep an eye on the market up here until I sell my current house, or keep it and rent it out. After that, perhaps curiousity will keep my interest, perhaps not.

We could go for 5% or 10% down and buy almost twice as much house. But the payments go up too, and even though we could “technically” afford that as far as the bank is concerned, and even though it is a long term purchase, you never know what life brings and planning for a rainy day is not a bad thing. It gets you peace of mind. There are folks I expect, who bought at the peak, and are not stressing because they put so much down, they still have positive equity.

My current home has lost 10% value in two years, but I bought 8 yrs ago with a big down. So while I wish it were worth more so I could get more $$ out of it, I am not stressed about it.

The great thing about living below your means, is that you don’t stress about money, can help those you care about when they are in financial distress, can give away a larger part of your income to charity, which adds greatly to ones happiness and sense of community, and are prepared for that rainy day or unpleasent surprise. Financial stress is a life shortning thing and interferes its enjoyment. I have been there, I remember. It was self inflicted and I realized I am not a masochist, so I stopped.

[raptorduck]

Wow, the house I could buy with only 5% or 10% down. But I don’t think one should buy what a bank will “let” him or her buy. A credit card company will also “let” you run up a huge amount of debt and then watch your little teaser rate dissapper as they lock you into their “standard” high rates.

People should buy what the can buy comfortably, without worrying about appreciation and depreciation. In this market, I consider a 20% down as a break even down from an appreciation standpoint. 30% for me is ideal, which is why I am pushing my wife to buy a home at a price where we can put in 30% down from our downpayment fund. If you put 30% down, you won’t worry about the market continuing to tumble so much, particularly if you are buying a long term home and don’t look at your home as either an investment or a supply of home equity funds to fund your lifestyle.

That is why I am a buyer right now. We need a new house, plain and simple. I am keeping an eye on the market to get the best price. After I buy, well I will keep an eye on the market up here until I sell my current house, or keep it and rent it out. After that, perhaps curiousity will keep my interest, perhaps not.

We could go for 5% or 10% down and buy almost twice as much house. But the payments go up too, and even though we could “technically” afford that as far as the bank is concerned, and even though it is a long term purchase, you never know what life brings and planning for a rainy day is not a bad thing. It gets you peace of mind. There are folks I expect, who bought at the peak, and are not stressing because they put so much down, they still have positive equity.

My current home has lost 10% value in two years, but I bought 8 yrs ago with a big down. So while I wish it were worth more so I could get more $$ out of it, I am not stressed about it.

The great thing about living below your means, is that you don’t stress about money, can help those you care about when they are in financial distress, can give away a larger part of your income to charity, which adds greatly to ones happiness and sense of community, and are prepared for that rainy day or unpleasent surprise. Financial stress is a life shortning thing and interferes its enjoyment. I have been there, I remember. It was self inflicted and I realized I am not a masochist, so I stopped.

[raptorduck]

Wow, the house I could buy with only 5% or 10% down. But I don’t think one should buy what a bank will “let” him or her buy. A credit card company will also “let” you run up a huge amount of debt and then watch your little teaser rate dissapper as they lock you into their “standard” high rates.

People should buy what the can buy comfortably, without worrying about appreciation and depreciation. In this market, I consider a 20% down as a break even down from an appreciation standpoint. 30% for me is ideal, which is why I am pushing my wife to buy a home at a price where we can put in 30% down from our downpayment fund. If you put 30% down, you won’t worry about the market continuing to tumble so much, particularly if you are buying a long term home and don’t look at your home as either an investment or a supply of home equity funds to fund your lifestyle.

That is why I am a buyer right now. We need a new house, plain and simple. I am keeping an eye on the market to get the best price. After I buy, well I will keep an eye on the market up here until I sell my current house, or keep it and rent it out. After that, perhaps curiousity will keep my interest, perhaps not.

We could go for 5% or 10% down and buy almost twice as much house. But the payments go up too, and even though we could “technically” afford that as far as the bank is concerned, and even though it is a long term purchase, you never know what life brings and planning for a rainy day is not a bad thing. It gets you peace of mind. There are folks I expect, who bought at the peak, and are not stressing because they put so much down, they still have positive equity.

My current home has lost 10% value in two years, but I bought 8 yrs ago with a big down. So while I wish it were worth more so I could get more $$ out of it, I am not stressed about it.

The great thing about living below your means, is that you don’t stress about money, can help those you care about when they are in financial distress, can give away a larger part of your income to charity, which adds greatly to ones happiness and sense of community, and are prepared for that rainy day or unpleasent surprise. Financial stress is a life shortning thing and interferes its enjoyment. I have been there, I remember. It was self inflicted and I realized I am not a masochist, so I stopped.

[wawawa]

These are some of the affiliates of Wells Fargo and as you can see all loans require 20% down.

http://www.linearfinancial.com/loans/default.asp

http://www.pardeehomeloans.com/dailyrate/default.asp

[wawawa]

These are some of the affiliates of Wells Fargo and as you can see all loans require 20% down.

http://www.linearfinancial.com/loans/default.asp

http://www.pardeehomeloans.com/dailyrate/default.asp

[wawawa]

These are some of the affiliates of Wells Fargo and as you can see all loans require 20% down.

http://www.linearfinancial.com/loans/default.asp

http://www.pardeehomeloans.com/dailyrate/default.asp

[wawawa]

These are some of the affiliates of Wells Fargo and as you can see all loans require 20% down.

http://www.linearfinancial.com/loans/default.asp

http://www.pardeehomeloans.com/dailyrate/default.asp

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