A Down Payment Dilemma
by Cape Cod Home Buyer from Massachusetts
Dear Kate, I am a home buyer with a down payment dilemma. I have an exceptional 800 credit score with a long history of excellent credit, no credit card debt, an auto loan through my credit union with $6800 remaining and a salary ranging between $85,000 to $100,000.
I have had to ride out the last 9 years of home ownership because houses on Cape Cod were just too expensive. A run down three bedroom home could easily cost $750,000 so purchasing was just not possible.
Now, house prices are falling but in this land of second homes, the population at large is unwilling to accept that homes they could sell for $600,000 just a year ago, are now in the $450,000 range. So homes are not selling that quickly here.
Having said that, a 20% down payment is tough to come up with. Essentially, a $350,000 home means a $70,000 down payment, $8,000 to close, and another few thousand to actually move from one place to another.
I am no credit risk at all. I have a lifetime of always paying my bills. I do not live beyond my means. I am conservative. Even my fully loaded jeep was l year old when I bought it.
Yet, it is so hard to gather such a large chunk of money while still paying all the bills for everyday living like rent and utilities.
Is there a bank which values a customer like myself and will approve me with less than 20% down payment?
Kate Answers: A Down Payment Dilemma
Dear Cape Cod Home Buyer, Thank you for writing to Ask Kate. I have answered your down payment question at Finding Low Down Payment Mortgage Financing
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