Investors with Cash and Low Down Payments #realestate #homeownership

Investors with Cash Edging Out First-Time Home Buyers
Source:  CNN Money

Investors continue to swarm local housing markets by offering all-cash deals and creating headaches for the first-time home buyers who compete with them.  These same investors then turn around and rent these properties to those same young adults for increasing amounts every year, making it even tougher for young would-be homeowners to ever save up enough money for a down payment. 

Low Down Payment Loans are Back
Source:  Time

Don't have enough savings for a 20 percent down payment on a home?  In 2015, 26 percent of loans for home purchases were made with down payments of less than 10 percent of the home's value, according to data released from RealtyTrac.  That's a 10 percent increase from 2014.  Overall, home owners who purchased homes with low down payments have been steadily increasing for the past five years.  Notably, there has also not been a significant difference in the number of people who default on low-down-payment loans as opposed to those with higher down payment.

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