Quote:
Originally Posted by The Dawg
Ill chime in:
The main reason for saying that is if you dont have the money to put down 5% (at least) of the asking price then that means you can not afford it. People think just because you can foot the initial mortgage amount that everything is all good. Well, you need some sort of safety net when dealing with your primary residence.
First timers without knowledge rarely factor in PMI, insurance and property tax (real killer). So yea, things are lovely at first, but if your income takes a hit you could be in trouble.
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Is this not true for someone who just put all of their money down for a down payment? The ability to save 5% of the price of the house shows some inherent qualities but not much. People tend to fight tooth and nail to keep the homestead and that is why historically we have a low foreclosure rates on owner occupied homes.
And Freeuhugemovies what is the foreclosure rate over lets say the last ten years or so on people with zero down and 5% down? I do know that VA loans were zero down and had very little foreclosure but maybe you have other stats?