Time for buyers to buy now. FHA to 10% down payment?

Time for buyers to buy now. FHA to 10% down payment?

http://online.wsj.com/art ... 0542.html
Tami Winbury Ventura Realtor at Keller Williams Realty

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  • February 17 2011 - Ventura
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Answers (6)

Profile picture for dacolan
This is actually great news. If buyers were required to have more 'skin in the game' years ago we may have avoided this mess. This will also result in more affordable housing.

And please take the time to read Zillow's Good Neighbor Policy against spam and self-promotion.
  • February 17 2011
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Profile picture for the_country_hick
It sounds like it would be a lot better time to buy once the 10% down payment is needed and most potential buyers who never saved up any real money can not buy and house prices drop much faster.
  • February 17 2011
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Profile picture for SoCal Engr
If I were buying, anything that thinned the herd would be a good thing. Less buyers to compete with could equate to more leverage in negotiations (your mileage may vary).

The only reason to rush and beat the FHA 10% down is if you are not really prepared (i.e., haven't saved the down), in which case maybe you really shouldn't be buying.
  • February 17 2011
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The article states banks want 10% for conventional loans. FHA is at 3.5% and there is "talk" that it may eventually go to 5%. That's not in the foreseeable future.

Tami it probably wouldn't hurt to first read the link that you post.

Happy funding, Rudi
  • February 18 2011
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When FHA was created the down payment requirement  for an FHA loan was 10%. The world did not end.
  • February 18 2011
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the world did not end when FHA required 10%, but the world also didn't support bubblicious prices...

ANYTHING that puts another barrier up for a buyer, lowers demand. Less demand = lower equilibrium price. They don't call them "the laws of supply and demand" for nothing...
  • February 18 2011
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