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Can you really save enough money to keep up?

Mortgage and Lending with Primary Residential Mortgage Inc. NMLS 3094 NMLS # 260747

Why do borrowers think that they must have a 20% down payment to buy a house? Where did they learn that from? If you are in the real estate industry, it is important that we are educating the home buying community on the programs that exist today that allow them to get into a home for -0- money down in rural areas and 3% down in all other areas. 

In my lending area of #NorthernCalifornia, and more specifically, #UkiahCalifornia, USDA Rural Development works for every property. If you are not aware of this program,  it doesn't require a down payment. But, i am not here today to talk about loan programs. I want to talk about educating the home buying community about thinking they can wait another year to buy a home because they will just save more money!

Real estate has been appreciating as higher then the historical norms, but should eventually settle down to a more historical 3.5-4.5% appreciation. Even that number, if you multiply it by the home value, is going to be tough to save enough to keep up. And, what happens if interest rates next year are 4.25%? That just means that the cost of buying a home next year will  not be any less expensive, and the home buyer will just qualify for less of a loan. 

So, all of you in this industry, educate the home buyers as to what loan programs are available and encourage them to talk to your lender partner about what they really can afford to purchase...Today!


Posted by

Rick Costa







NMLS # 260747 Representing Bay Equity Home Loans NMLS # 76988

Chrissi Chapman Topoleski
Coldwell Banker Realty - Woodbridge, VA
Helping agents live an exceptional life!

The USDA program is excellent for those who qualify and are purchasing in rural approved areas. There are so many more options available than the 20% down, you're the person to ask!


Sep 15, 2016 01:21 AM
Devona Garrigus
Garrigus Real Estate - Redlands, CA
REALTOR® / Short Sale Specialist

Buyers need to be educated as to the many options they have. Great post, Rick Costa . Have a good rest of your weekend!

Oct 23, 2016 04:32 AM