It Is Hard For Home Buyers To Compete If They Have A Small Downpayment Or If They Need Closing Cost Assistance


It Is Hard For Home Buyers To Compete If They Have A Small Downpayment Or If They Need Closing Cost Assistance
By Scott Rogers • November 19, 2020
A few short years ago... If you were buying your first home and only had a small (0%, 3.5%, 5%) down payment, a seller wouldn't be too concerned about your high LTV (loan to value) ratio and you would likely find success in buying your first home. These days... If you are buying your first home and only have a small down payment, a home seller is likely to turn down your offer in favor of an offer from a buyer with a larger down payment. After all, most homes that would appeal to first time buyers are receiving multiple offers these days. A few short years ago... If you didn't have a lot of cash to put into your home purchase, and you needed to ask the seller to contribute a few thousand dollars towards your closing costs, a seller would likely be agreeable. Or, worst case scenario, they'd want to increase the contract price by the amount of the credit that they were giving back to you. These days... If you are buying a home and asking for the seller to pay part of your closing costs, you are likely to be turned down by the seller. They are likely to elect to move forward with an offer from a buyer that does not need a closing cost credit. After all, they'll likely be choosing from several offers! So, it's not that you can't buy a home with a small down payment or if you need a closing cost credit -- but it will be a lot harder to do so these days, largely because of other competing buyers who have a larger down payment and/or who do not need a closing cost credit. Receive Updates by Email Recent Articles: There Are Plenty Of Types Of Houses That Exist That Just Are Not Available To Purchase Home Sales By Price Range In The City Of Harrisonburg Are You Compromising On Aspects Of Your Next Home That You Can Or Cannot Change Later? How Much Slower Are The Winter Months In Our Local Housing Market? Rockingham County and New Home Sales Drive Surge in Area Housing Market Find The Balance Between Optimistic And Realistic Home Pricing Room Size Is Difficult To Understand Solely From Real Estate Photos How Much Would You Value Not Having To Prepare Your Home For Showings? One Out Of Four Homes Is Taking Longer Than A Month To Sell Consider The Cost Of Your Planned Renovations When Planning Your Offer
Have any questions? Contact Scott Rogers at 540-578-0102 or scott@funkhousergroup.com
Based on information from the Harrisonburg-Rockingham Association of REALTORS® or its MLS, for the period Jan 1, 2000 through Nov 21, 2024 (unless otherwise noted).
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