<p>The 20% down rule only applies to qualified residential mortgages (QRM) under Dodd-Frank, which will be a very small percent of total mortgages. QRMs are fully-documented, “safe” mortgages that lenders can securitize without retaining a 5% credit risk. I don’t think the regulations have been finalized; NAR is lobbying hard to have the whole QRM idea tossed, while mortgage insurers are pushing for a 5% down payment.</p>
<p>Fannie Mae & Freddie Mac are still 5%, FHA is 3% and VA is 0% down.</p>
<p>Interesting article in the paper here this morning. Toronto, and surrounding area, is on track to have the best sales year ever. I knew the market was hot but even I was surprised by a home featured in the article. A semi-detached home in a popular, but mixed, area was listed at $699,000, was on the market for 7 days, had eight offers and sold for $790,000. When homes are listed these days, it’s typical to set a date at which time the vendor will accept offers, usually about a week later, after a weekend of open house. Apparently, somewhere between 20 and 30% of homes are selling for more than the asking price in today’s market.</p>
<p>What I have heard lately is that anything outside 20% down is hard to find and harder to get. Also due to some Fed regulations the two biggest reverse mortgage lenders have pulled out throwing a big wrench into many retirement plans.</p>
<p>You cannot buy cheap houses in California if you do not have cash in hand, all of it.
And Banks expect you to close in 7 days for an all cash deal.</p>
<p>"NEW YORK (CNNMoney) – Home prices have taken such a beating and demand for rental units has increased so much that it’s now cheaper to buy a two-bedroom home than to rent one in most major U.S. cities.
According to real estate web site Trulia, buying was cheaper than renting in 74% of the country’s 50 largest cities in July. In just 12% of the cities, including New York, Seattle and San Francisco, renting was cheaper. In the remaining 14% of cities, renting was less expensive but close to the cost of buying.</p>
<p>In addition to a continuing decline in home prices, rock-bottom interest rates have added a lot of weight to the buy side of the scale. The overnight average rate for a 30-year fixed was just 4.19% on Monday, according to Bankrate.com. A 15-year fixed averaged just 3.43%."</p>
<p>BTW, I went through one closed in January, whereas the bank will levi a $100 penalty per day if the money is not in Escrow in 7 days. I did get a 150K discount, nevertheless.</p>
<p>this is lot better than on the court steps in a trustee sale, you have to have cash in hand if you bid on it.</p>
<p>jym, I think the oil tank in the ground is going to be the largest obsticle in your sale, but I hope not. I had an oil tank in the basement and the way to remove it was costly, not to mention changing the heating system. Good luck…</p>