Real Estate Down Payments
Typical down payments for real estate range from 5% to 20% of the home’s price. During the height of the housing boom, lenders frequently required smaller down payments or even no-money down. Normally when the lender is skeptical of the buyer’s ability to pay and there is a higher risk of default on the mortgage, a higher down payment is … Keep Reading → required. For cash starved buyers, sometimes the lender issues a second mortgage to finance the down payment. With little equity in the home, the buyer is more likely to walk-away or go into foreclosure if unable to pay the mortgage. Many first time home buyers in the US received a tax credit of up to $8000 to stimulate the housing market. Learn about these special tax credits and other ways to finance down payments from knowledgeable Hubbers
