Look to FHA for 5% Down Buyers

We had a listing sell last week where the buyer was putting 5% down (excellent credit) and doing a loan with B of A. Guess what...B of A dumped thier 5% down financing. While FHA is a bit tougher on the appraisal side, they are still an option. On the surface this seems ludacris but we have to look at things from the banks perspective. With prices dropping 3-5% per month in many markets, does 5% down make sense as an equity position, probably not. The borrower could be upside-down 60 days after closing.

This is important information for sellers, they will likely end up doing more repairs than they would have with a conventional loan but better to spend a little money on repairs than loose a sale.

Troy Herhsey - www.CombsHersheyRealtors.com

360-816-6728