Housing Outlook for the Rest of 2020The average home price in Los Angeles County for the first 5 months in 2020 was $472,565 which is an increase of 13.5% percent compared to the average home
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3% Down Payments Being Used at Lowest Level in 10 Years
Fewer people bought a house with 3% down in 2019 than in any of the previous 10 years. Only 25% of home purchasers getting a mortgage took advantage of this low down payment. Many have still been using the FHA loan which is 3 ½% because the requirements are easier such as lower credit scores. The downside of putting less money down on a loan is there is Property Mortgage Insurance. This dollar amount is added to a buyer’s monthly obligation and can cause the loan to not qualify by the lender.
The lower the average sale price, the lower the down payment. Veterans that qualify for a VA loan have no down payment and assistance toward closing costs. First time buyers have a hard time saving for a down payment, however they are allowed to receive compensation from their family as down payment assistance as long as the funds received can be shown in their bank account for two months. For help with how to become a homeowner, please call Jack Lees at 818 262-0924. I am now a Quicken Loans mortgage broker and can assist you with all your real estate and loan needs.