3% down payments being used at lowest level in 10 years

People are trying to be prudent. However, the housing market has changed from previous eras. More volatility is possible. That higher down payment can produce a larger wipeout.
 
I heard an ad on the radio the other day from a mortgage broker. They offer to pay your PMI if you get a loan through them.

The problem is not the 3% down. It's the fact of giving a loan to people who only have 3% down. They are generally not the best credit risks.

Not to mention the nosebleed prices people are paying for even crappy stocks. It is getting harder and harder to buy anything at value prices.

How about the profusion of novel methods of funding? And the crazy housing prices in some places like San Francisco? There must be some kind of bubble somewhere. Auto loans, student loans not getting paid. Hard to see how it can all end well, but it's not over yet: yield curve still curved.
 
Talk about reporting yesterdays news...All the GSE's are implementing 3% down payment programs.

FHFA director announces changes to open Fannie, Freddie credit boxes
“To increase access for creditworthy but lower-wealth borrowers, FHFA is also working with the Enterprises to develop sensible and responsible guidelines for mortgages with loan-to-value ratios between 95 and 97 percent.

http://www.housingwire.com/articles...s-changes-to-open-fannie-freddie-credit-boxes


Fannie and Freddie officially approve 3% down payment mortgages
Both government-sponsored enterprises officially announced their individual 97% loan-to-value products, in the government’s latest attempt to expand the credit box for first-time homeowners.

http://www.housingwire.com/articles...e-officially-approve-3-down-payment-mortgages
 
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