Posted by Leo Clark. on Wednesday, October 8th, 2014 at 9:41am.
We’ve all heard various claims about buyers needing at least 20% down in order to secure a loan for their new home or condo, and traditionally, this has more or less been the case. But like most things, the mortgage industry has changed significantly over the years, and as home values have continued to rise in recent years, the need for innovative and creative loan products has drastically increased.
A number of government-backed loans, such as those from the Federal Housing Administration (FHA) for example, allow for as little as 3% down, but can be somewhat more difficult to secure. Borrowers with a strong credit and income history are eligible for a FHA loan, but there’s certainly a few extra layers of terms and conditions before such loans are approved.
Myth 1: Working Directly with the Listing Agent Gets Buyers a Better Deal
Myth 2: Buyers Should Never Offer Full Price