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But I thought it was different this time. No subprime loans. How can this be? Can a house-humper please explain?
Very common-in my circle. A lot of my friends circle bought at 5% down.
lostand confused saysVery common-in my circle. A lot of my friends circle bought at 5% down.
What lenders?
I recently sold a property in the Bay Area where the highest bidder provided a preapproval letter that showed that they were approved for an amount (greater than my selling price) with only 10% down. It was a small lender I had never heard of.
I was a bit skeptical, but went ahead and accepted the offer as it was in fact the highest of many offers received.
The financing went through with 10% down (with what I assume to be a PMI)
I thought these types of loans were extremely rare in 2018?
So my question, how common are these sub 20% down loans in 2018? Who is offering them?
With the market as high as it currently is, any trigger or shake up in the economy that causes a dip in home prices can put someone with only 3.5, 5, or 10% equity to go underwater at the blink of an eye.