Big down payments could mean big problems for many people hoping to purchase a Jacksonville property sale.
In a strong economy, it can take an individual well over a decade to put enough money away to put a down payment on a home without any outside assistance. However, new regulation proposed by the Federal Government would stipulate a mandatory down payment of 20 percent on any home, and mandate that potential home buyers who are unable to put forward that kind of cash be considered “high risk” buyers, reducing their chances of obtaining a fair mortgage rate.
Under the new regulation, banks who granted mortgages to those with less than 20 percent available for a down payment would be subject to a 5% fee in the form of a credit risk. This five percent risk penalty has led many skeptics to believe this practice would unfairly disenfranchise potential home buyers who are otherwise unable to accumulate the down payment necessary to make their home buying dreams come true.
Many people are scared that these new rules could essentially price potential buyers out of the housing market, leading to a decrease in property sales at a time when the housing market is finally doing well.
Property sale experts like your real estate specialists at Traditions Realty in Jacksonville have the insight to help you through the hardships and obstacles associated with buying a home. Whether you are looking at traditional residential property sales, short sales or investment properties and foreclosures in Jacksonville, your real estate expert can provide you with the guidance and support necessary to help you make the best decisions possible as you purchase you home.
Everyone should have the chance to own their own home. Managing finances is just one aspect of purchasing a home. Short sales and foreclosures reduce the asking price of a home, making the requirement for down payments lower than you might think possible.
Down payments have always been a headache for property buyers—especially first time property buyers who don’t have the personal capital invested in their existing home. Don’t let this scare you away from the housing market! Contact us for advice on purchasing your first home and assistance as you sort through property sales in Jacksonville.