Good news for homebuyers who don’t have a lot of cash on hand: Banks are offering loans with down payments of just 5%.

 

After the housing bubble burst, buyers needed to come to the table with as much as 20% down or they had to turn to the Federal Housing Administration for a low down-payment loan.

But now banks like TD Bank, Bank of America (BAC, Fortune 500), and Wells Fargo (WFC, Fortune 500) are loosening the purse strings, offering loans with down payments that are as low as 5%.

Why the change of heart? Market opportunity for one thing.

FHA dominated the market for low down payment loans during the housing bust. Taking on all those risky loans, however, depleted the agency’s reserves and has forced it to increase costs.

 

We can help you not only find the home of your dreams but also find great financing terms!

As always, let us know how we can help you find the home of your dreams in Laguna Beach, Newport Beach, the Laguna’s, Dana Point and our coastal inland citiesplease contact us!

Make it a great day!

Jeff

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