You are a success by anyone’s measure. You make more money than most of your peers. You’ve lived carefully- your student debt is well managed and you’ve managed to save tens of thousands of dollars.
And yet… it is not enough to make a 20% down payment on a home in this area. It is sooooooo frustrating.
Have faith. Your time as a buyer might be now.
For the last several years a buyer with a low down payment could not compete with buyers loaded with cash, but that situation might be changing. While those large cash buyers are still out there, we are seeing opportunities for everyone else.
Is the market about to crash?!
Inventory levels are still at historic lows, and a “crash” in the real estate market is still very unlikely. However, the number of homes on the market today that have experienced a price reduction is on the rise. These homeowners are far more likely to consider a well qualified offer, even if the down payment is low.
Low down payment? How low?
An FHA loan is as low as 3.5%. If you are a veteran (thank you for your service!), a VA loan can be 0% down payment. It doesn’t get any lower.
It’s still tough!
I am not suggesting you can buy any home out there with a 3.5% down payment. It is still very competitive for the majority of homes. But, let me give an example of a home you might buy…
This home is a little slice of heaven! Completely remodeled and ready to move right in, it sits high above the street for maximum light, privacy and views. Pull right into the lovely two car garage and no one will see you are there! The 19,000 sf lot offers lots of entertaining and play area level with the home and a two additional flat terraces offer a world stunning views and possibilities.
We just repositioned the price to $629,000 and it is a steal. I know the homeowner would consider any well-qualified offer.
Need ideas on how to GET a down payment?
The California Association of Realtors is dedicated to homeownership for all. Check out this infographic and be sure to visit the Down Payment Resource Directory for ideas and resources.