Comments on: First-time Home Buyers: Where to Start http://www.sacramento-home.com/real-estate-events/2008/first-time-home-buyers-where-to-start_1099.html Home of the Sacramento Market Update and Ask The Realtor® Fri, 25 Jul 2008 06:04:03 +0000 http://wordpress.org/?v=2.3.1 By: John Lockwood http://www.sacramento-home.com/real-estate-events/2008/first-time-home-buyers-where-to-start_1099.html#comment-29446 John Lockwood Sun, 04 May 2008 20:06:38 +0000 http://www.sacramento-home.com/real-estate-events/2008/first-time-home-buyers-where-to-start_1099.html#comment-29446 I agree with you on the interest only part of that equation, but there's nothing wrong with low money down loan programs. FHA requires only 3% down, for example, and VA is another popular program that offers no money down and no closing costs (VA "no-no"). 100% financing has gotten a bad rap because it's easier for the buyer to walk away, and the way buyers got to 100% financing in the past was often based on poor qualifying guidelines and programs like option ARMs. Very, very, very few first time buyers have the $45,000 down payment that your advice would require for a median priced home in Sacramento County. I agree with you on the interest only part of that equation, but there’s nothing wrong with low money down loan programs. FHA requires only 3% down, for example, and VA is another popular program that offers no money down and no closing costs (VA “no-no”). 100% financing has gotten a bad rap because it’s easier for the buyer to walk away, and the way buyers got to 100% financing in the past was often based on poor qualifying guidelines and programs like option ARMs.

Very, very, very few first time buyers have the $45,000 down payment that your advice would require for a median priced home in Sacramento County.

]]> By: advisor http://www.sacramento-home.com/real-estate-events/2008/first-time-home-buyers-where-to-start_1099.html#comment-29445 advisor Sun, 04 May 2008 17:20:04 +0000 http://www.sacramento-home.com/real-estate-events/2008/first-time-home-buyers-where-to-start_1099.html#comment-29445 Make sure to stay away from interest only or low money down loans. Put at least 20% down and take out only a fixed rate, interest plus principal loan. Make sure to stay away from interest only or low money down loans. Put at least 20% down and take out only a fixed rate, interest plus principal loan.

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