Low Down Payments For Fewer FirstTime Buyers

Dated: 04/01/2014

Views: 678

DAILY REAL ESTATE NEWS | TUESDAY, APRIL 01, 2014

Fewer first-time home buyers are obtaining mortgages with down payments of 6 percent or less, according to the National Association of REALTORS®’ latest Confidence Index Survey. In February, 61 percent of REALTORS® reported that their first-time buyers had obtained mortgages with 6 percent down or less compared to 74 percent of REALTORS® reporting the same in 2009.

“Along with the re-emergence of private mortgage insurance since 2011, REALTORS® have reported several factors driving this trend: tight competition for available properties, stricter underwriting standards, the higher cost of mortgage insurance at the [Federal Housing Administration], as well as a reduction in the high-cost loan limits at which FHA can finance,” according to NAR’s Economists’ Outlook blog. “With demand still stronger than supply across many states, a higher down payment enhances the likelihood of winning the bid and of obtaining a loan from the bank.”

Source: “Fewer First-time Buyers Obtaining Mortgages with Low Down Payment,” NAR Economists’ Blog (March 31, 2014)

Phil Mount

Phil Mount is an agent at Front Street Brokers in Boise, Idaho. Phil became a licensed REALTOR in August 2009 after a 25 year career as a technology marketing professional. In his first year as an a....

Want to Advertise on this Site?

Latest Blog Posts

Blackhawk River Ranch 532 Acres Nature Lovers Dream

Blackhawk River Ranch (532 +/-acres) - A Nature Lover’s Dream!3324 W Mountain Road McCall, Idaho   MLS 98648542 The 532± acre Blackhawk River Ranch is one of very few large land

Read More

Get Money Back From Idaho Power With Renewable Energy

Renewables and Net Metering(less than 100 kW)PrintIdaho Power's Net Metering tariff allows Idaho and Oregon customers to install small-scale renewable generation projects on their property and

Read More

Free Idaho Power Shade Tree Project

Get your free trees from Idaho Power!  I now have two BEAUTIFUL oak trees in front of my home.  All of your planting instructions come with the trees.  https://www.idahopower.com

Read More

Cozy 3 Bed 2 Bath Single Level Meridian Home

Cozy 3 Bed 2 bath Single Level Meridian Home  1180 W. Kingswood Ct. Meridian, Idaho 836461,352 sq. ft.Contact: Jared Cozby (208) 830-3715  $184,900Perfect cul de sac location

Read More