For a long time, it seemed like banks were handing out mortgages on silver platters. Even those with not-so-good credit could find a lender who would work with them. This seemed like a dream come true for those who wanted to become homeowners. But when the housing market went south, lenders began to be more cautious.
Filed under Mortgage by on Nov 21st, 2009. Comment. 
For many people, owning a home is something that they hope to achieve one day. Being a homeowner gives one a sense of accomplishment, and it offers more freedom than renting. But there are certain expenses that can stand in the way of owning one’s home. One of the biggest is the down payment.
In years past, lenders almost always required a down payment of at least 20% of the purchase price of a home. This requirement was a major obstacle for many would-be homeowners. For a home that sold for $200,000, they would have to come up with $40,000 up front. It would be nice if we all had that much money sitting around, but few people do.
Today there are programs that allow home buyers to make smaller down payments. Some mortgage programs for first-time home buyers make it possible to buy a home with nothing down. Others require a down payment of as little as 3%. This has opened the door for those who otherwise could not have afforded to buy a home to do so.
Filed under Mortgage by on Nov 9th, 2009. Comment.
