First time buying in these changing times?

With the economy and specifically mortgage lending the way it is, I was wondering if anyone had any advice or info for first time home buying. I'm not currectly in the market but I just like to have an idea onthe way things are going. I know it used to be very little down to qualify but now I hear that you must put 20% down. Any ideas on where I can go to get current information for first time buying?

Re: First time buying in these changing times?

There's lots of programs for 1st time buyers and it's still a great time to buy and no you def don't have to put 20% down. If you buy before june 2009 there's a tax credit of 7800 the gov't is giving that you pay back over 3 years.

I'm going with wells fargo, min down in my area is 3% for a house, 15% for new contruction.
We are not 1st time buyers, but i wish we were!!!!

Re: First time buying in these changing times?

You don't need to put 20% down. There are still plenty of lenders that will lend with 10% down.

The big issue is not what you are putting down... it's what you are paying for it (vs. comps).

Do you really think a bank is going to say no to putting down 10% on a house that is currently selling for 80k below market comps?

Re: First time buying in these changing times?

you totally don't need 20% down

they banks are really looking at debt to income ratio

and what it will be once you buy the house

my DH just closed on a loan with only 3% down (FHA loan - I think)

Re: First time buying in these changing times?

Re: First time buying in these changing times?

Banks will still lend $$ you dont have to put 20% down.. Just be smart about buying a house.. Its your first home.. As long as it suits your needs, people hung themselves because they were pigs and needed to have everything brand new, 2 pls bthrooms blah blah.

Paint, new carpeting, resanding floors goes a longgggg way...

Totally look at homes in your price range, brokers and agents get paid they are not your friends its their job.. So educate yourself and if something is too good to be true walk away....

There are many homes on the market right now that have been sitting for a long time.. Just be honest onwhat you can afford, how much you really can put down.. And never roll your closing costs into the mortgage.. Its like charging a happy meal at Mcdonalds and paying interest for 30 years.

JMO

Re: First time buying in these changing times?

DH and i are in the process of buying a house right now and we are doing an FHA loan and only putting 3% down. You definately don't need to put 20% down

Re: First time buying in these changing times?

Thank you everyone. If I need to put 20% down on a house... there's no way I'm ever buying.

Re: First time buying in these changing times?

I am in contract to buy my first home and there were a few options available to us - depending on the price of the home, etc. We were going to do an FHA loan but wound up doing a traditional mortgage, and we did not put 20% down.

We were nervous in the current economy that with the intense scrutiny they might find a reason to turn us down, but everything actually went pretty smoothly. We went with Wells Fargo.