How does the ready availability of ultra low downpayment FHA financing affect this downturn finding a bottom at current price levels? At the current median (OC) of $450,000 the downpayment is just $13,500. Of course since FHA is fully amortized there has to be sufficient income but I have heard DTIs can go as high as 60%. This means current price levels should be affordable to most. Given this could the current rally be a possible bottom?
I’m not suggesting prices will rise but that sales will increase and price levels stabilize at this point.
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