FHA home loans down payment

To attend fha home loans

For those of us who may not have the recommended 20% down for purchasing a house, there is good news. Instead of being forced to turn to the FHA for a low down loan there are now some banks who are offering loans for as little as 5% down. Banks like TD Bank, Bank of America, and Wells Fargo are offering their home loans with down payments for as little as 5% down.

Over the last few years, the FHA has been raising premiums because after the housing bubble burst the FHA dominated the low down payment market causing them to take on many high risk loans and depleting the agencies reserves. This has caused many potential borrowers to look elsewhere and certain banks think they can offer a much better deal than the FHA.

Although the low down payment loans were very risky before, rising home prices have reduced the potential loss on these types of loans. Though these banks are offering the 5% down loans, they will also require you to purchase private mortgage insurance until the typical 20% equity in the home is built up.


Americans can't save 20% for down payment...

2011-07-26 09:31:33 by secureourborders

Saving for the traditional 20% down payment may increasingly become an insurmountable hurdle. To help gauge how much of a hurdle the 20% down payment can be (which outside of FHA loans is becoming the de facto standard), we estimated how long it would take the typical consumer to save for a down payment on a median-priced home, which was $158,700 as of 1Q 2011, according to the National Association of Realtors. Liquid assets held by consumers under 45 years old available for a housing down payment average $22,600, according to the Federal Reserve Board’s Survey of Consumer Finances. In order to cover a 20% down payment and 5% closing costs for the median-priced home,...

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