Home Buyers - Your Time is Almost Up.
I hate to say it, but I think the end is here. My guess is that within the next year, we will be back to only one option for 0% down home purchases. The VA loan.
Am I sad?
Not really. I think that a lot of people are not meant to be home owners.
Do this hurt the real estate market?
Most definitely. If we take all of the first time home buyers out of the equation that don't have downpayments, we are left with 4 first time home buyers (a sarcastic statistic - say that 3 times fast). We already have enough problems with the buying chains being broken by every foreclosure that sells. If we take eliminate more of the buyer pool, our problems will magnify.
But this isn't really the negative that my last paragraph makes it sound to be. It is a good thing to pre-qualify people that would like to buy homes. What better way to ensure that they can handle their money then to make them save some. If someone wants to buy a home bad enough, they will save the money to get it. I know that it sounds harsh, but if you really think about it, I think you will agree.
Jason Tangen, GRI - Real Estate Broker Associate with Edina Realty in St Cloud
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