The Down Payment Return to Home Sales in Santa Rosa

The days of zero down for real estate in Santa Rosa are over as we experience the end of the financial market collapse. The good news is that home prices are very attractive now so for families that have saved a down payment, or investors with cash on hand now is a great time to pick up deals.

clipped from finance.yahoo.com Over the past 18 months, the mortgage market has changed more rapidly than in any comparable period since the Great Depression. From the standpoint of borrowers, two changes are of paramount importance. The first is an increase in day-to-day price volatility. The second is a tightening of underwriting requirements, with higher down payment requirements the centerpiece. That is the subject of this article. When the market turned and home prices began to decline in late 2006 and 2007, down payment requirements had to be drastically revamped. Just as rising prices generate homeowner equity, falling prices destroy it. There are no zero-down loans anymore, except the VA loan for veterans. FHA loans remain available at 3 percent down for smaller amounts, but conventional loans now generally require 10 percent down, and in some areas it is higher. On top of this, lenders now want most borrowers to have good credit scores and to fully document their incomes.