Brought to you by Scott P. Rogers, Funkhouser Real Estate Group, 540-578-0102, scott@HarrisonburgHousingToday.com
Brought to you by Scott P. Rogers, Funkhouser Real Estate Group, 540-578-0102, scott@HarrisonburgHousingToday.com
Thursday, November 19, 2020
A few short years ago...
- If you were buying your first home and only had a small (0%, 3.5%, 5%) down payment, a seller wouldn't be too concerned about your high LTV (loan to value) ratio and you would likely find success in buying your first home.
These days...
- If you are buying your first home and only have a small down payment, a home seller is likely to turn down your offer in favor of an offer from a buyer with a larger down payment. After all, most homes that would appeal to first time buyers are receiving multiple offers these days.
A few short years ago...
- If you didn't have a lot of cash to put into your home purchase, and you needed to ask the seller to contribute a few thousand dollars towards your closing costs, a seller would likely be agreeable. Or, worst case scenario, they'd want to increase the contract price by the amount of the credit that they were giving back to you.
These days...
- If you are buying a home and asking for the seller to pay part of your closing costs, you are likely to be turned down by the seller. They are likely to elect to move forward with an offer from a buyer that does not need a closing cost credit. After all, they'll likely be choosing from several offers!
So, it's not that you can't buy a home with a small down payment or if you need a closing cost credit -- but it will be a lot harder to do so these days, largely because of other competing buyers who have a larger down payment and/or who do not need a closing cost credit.
