43% of first-time home buyers put no money down

[ckramer]

As housing prices soared last year, an eye-popping 43% of first-time home buyers purchased their homes with no-money-down loans, according to a study released Tuesday by the National Association of Realtors.

The median first-time home buyer scraped together a down payment of only 2% on a $150,000 home in 2005, the NAR found.

link

[calico1]

1. Wow, I wonder how long those mortgages are for?

100 years? Good grief. If you can't afford a downpayment you can't afford the house.

[ixion]

2. see, that's just the thing about interest only loans

you're not paying the principle, which means you can't actually afford the property.

As interest rates continue to climb, watch for these folks to default on their mortgages.

[Roland99]

3. 30 years, I'd bet. But, what *I* wonder is how many are fresh out of CH. 7

A friend of mine works at a mortgage broker.

He said there are programs to get people into a mortgage within weeks of CH.7 BK discharge (requires at least 5% down though.)

2 years out of BK discharge, one can go FHA. One can go sooner than 2 years if the FICO score is >580 and probably squeeze by with 0%-2% down. Interest rate is higher that way but, still, 7-8% is still a decent rate. Trouble is, with no equity, if the house appraisal drops and the people have to sell....

[StuckinBFE]

6. It called house poor

Last year when the house I was renting was sold (as a fixer upper for $375k) I went looking for a house while I could almost afford the monthly mortgage it would have taken me 30 years to pay off. Looking back I am glad I didn't buy the market dip about 10% after the summer months.

Also I am in bozeman, montana. It's a small college town with tons of real estate agents that are driving up the prices by buying and selling homes within six months, I am glad they all lost 10% last year.

[sandnsea]

9. That's not true at all

In this market, house payments quickly become less than rent. Where do you think people are living if they aren't buying? They have to pay to live somewhere, may as well make a step towards building some equity even if it is just market equity right now. Eventually it'll become real value. Although I wouldn't recommend people buy exactly now.

[LostinVA]

11. Thank you!

[SoCalDem]

28. sad but true.. 1 BR apts around here are renting for $1100+ a month

Over the years, home ownershiop became about investment more than being a home.. People used their homes as a ladder to get to the "ultimate dream home" as soon as they possibly could, and the market cooperated with them to a degree. People were coached to get as much house as they could possibly afford, so they would make more money on the resale.

We have always bought for as cheap as we could..and since we had very little money, we always only had a few houses to choose from:(.. But then we stayed as long as we possibly could, and moved only when a transfer happened. 1st house in Kansas, 2nd in Colo, and this one since 1982.

We did not have "deals" like they have now.. We had to put down $12K on the house we are in now , when we bought it for $82K.. (That included closing costs etc)

I really don't know how young people afford housing these days:(

[Chomskyite]

69. Speaking as a 33 year old Ph.D. English instructor in Louisiana

. . . making $31,000 a year, I don't plan to EVER own a home. I'd like to. It won't happen. I'm priced into paying my $500 a month to a slumlord and getting no equity in return.

The toilet in this apartment won't even reliably flush. So the money I'm throwing down it isn't going down quite as fast as it could I suppose.

[justroots]

72. Don't give up hope!

I'm sympathetic! My husband is a professor and after teaching over 35 years and being department chair for over 20, he'd make more money today if he taught kindergarten in the public schools. But don't give up hope about owning a home. I bought my first one in the Philly suburbs making less than you do. I even lost my job and was able to make ends meet. I found that with the tax deductions, it didn't cost much more to own a small home than it did to rent. There's all kinds of ways to buy with a small down payment. I went with a government-backed loan for lower-income people. If a person is responsible, and I am, these loans with little down payments are wonderful!

[LostinVA]

10. Totally incorrect

I put down 1% and have a 30-year fixed. The total house payment is decently lower than my rent was, plus I have a nice deductible for the FIRST time in my life. Even with all of the extra costs owning a house incurs, I'm still much more ahead every month than I sued to be.

If you can't afford a down payment,. of course you can still afford a house. You just have to get a good loan AND not be tempted to buy "too much house," which I didn't.

Don't paint those of us who are the working poor irresponsible debtors.

on edit: Oh, and my rate is an enviable 5.5%. FIXED.

[calico1]

27. I am sorry that I offended you.

I know people that are up to their eyeballs in debt and then go looking to buy a house that they really shouldn't be getting because they still have debt and that is "too much house" as you put it. I know several of those people. That is more what I was thinking about. If you don't have a lot of debt and put the money toward improving the home then, yes that would be a good thing, especially if you don't go buy yourself a boat, an SUV, etc. to go along with the house like some people I know have done.

[LostinVA]

44. I did buy a Maserati

A Matchbox one!

[mntleo2]

48. Working Poor Are Debt Irresponsible?

I am sorry but your demonizing the working poor is a little too much.

Look, you yourself say that your mortgage is LESS THAN RENT, yet you think someone trying to do the same is "irresponsible"? You need to understand here real quick that he working poor are lucky to have a home that they pay that exorbitant rent upon ~ for some greedy realty investment that is making money off their backs. I am tired of people calling the struggle to attain a home as being "irresponsible" for merely trying to lower their ever spiraling rent costs, LIKE YOU SAID YOU DID. This is *not* buying too much house!


HEAR THIS LOUD AND CLEAR PULEEEEEZE: When ANY home, no matter how ghetto, costs more than 3/4 of an income (no exaggeration for millions, btw) NO FAMILY is "being irresponsible" to want to get some stable payments going LIKE YOU DID!!!!! AARRGGHH!

Then out of the other side of their mouths people blame the poor for where they are at.

There!

Cat In Seattle <----breathing hard and sure you did not mean to sound as judgmental and disparaging on low income workers as you did, just want to set you straight so you do not do that again

[LostinVA]

52. I'm so glad you said that!

I was too upset over that post to answer it fully. You put it perfectly.

[Triana]

68. Same boat here....mid-40s and...

...had to spend much of my precious savings trying to LIVE during 2001 - 2005 after being LAID OFF in bu$hit's Enronomy and while in-between suckass contract jobs. I've made it through OK but just because people don't have huge downpayments isn't necessarily their fault nor does it mean THEY are fiscally irresponsible. It's GEORGE BU$H'S fiscal irresponsibility that caused this for many people.

I've got a 30-year FIXED at 5.5 myself and had a 2.5% down pymt. I'd hate to be considered "too irresponsible" just because I live in a REPUBLICAN economy and that has caused me to have to use 2/3 of my savings -- just to survive. If I was REALLY fiscally irresponsible, I'd not had that savings to fall back on and I certainly would not have decent enough credit to get a home loan. Give folks a break here. We're just trying to have a decent (not extravagant - just decent) life - in spite of Republicans fiscal philandering and in spite of their trying to prevent us from doing so -- so their goddamned corprat cronies can get richer off of OUR backs.

[thinkingwoman]

12. mine's a standard 30 year

at 6% interest.

My total mortgage payment (which includes property tax payments) is $300 less each month than rent.

If I'd continued renting I would have never, repeat never, been able to save for a downpayment. BTW, I do NOT have car payments (I drive a 12 year old car bought used many years ago), and I will also be paying off my student loans for another couple of decades. We have no retirement savings and no college funds for our kids. We live paycheck to paycheck and always have.

I am 40 years old and this is my first (and likely only) home. I feel tremendous pride in being able to finally give my teenage children a stable home to call our own.

Thank you for judging me.

[LostinVA]

17. Thank you for putting it better than me

Don't you love the conclusion-jumping and self-righteous judgments by some on this thread? Except that my loan is 5.5&, I have no kids, and I'm 41, your experience could be mine.

And yeah, I'm proud of myself, too!

[thinkingwoman]

19. your rate is fabulous

I'm so jealous. :hi:

Doesn't it feel amazing to wake up in your own home? Things I used to hate doing (shoveling snow, etc.) seem like heaven now.

Just last night my daughter (17) out of the blue says "I love our house."

Wow.

Congratulations to you. And may our collective experiences and successful home ownership prove the conclusion jumpers wrong.

[LostinVA]

22. I know!!! Our closer said it was the only 5.5 she had seen all month

It stayed that arte for only like two days.

Do you LOVE going to Lowe's, etc. now, and looking at stuff? And hanging birdhouses? And raking leaves, and painting, and shoveling snow, and keeping everything all nice and clean? And having people to your house for Thanksgiving!

Sometimes I just stand in the LR and giggle... it blows my mind!

I love my house, too! And so do the kitties -- they love seeing deer, etc.

[thinkingwoman]

26. oh Lowes!

My son hates that store. He's 15 and claims it's a mall all by itself. He gets so frustrated at my indecision of paint colors and I thought he'd lose his mind the day I was picking out new locks for the front and back doors! LOL

Our dogs love the fenced backyard. They run around and around until we actually have to call them back into the house, and our cats have already staked out the best windows!

I remember the day our broker said she could lock us in at 6%. I thought that was an impossible rate for us to get and jumped right on it.

I am REALLY looking forward to that tax deduction too.

[LostinVA]

40. I love owning a house!

We painted the kitchen this weekend -- and are painting the cabinets/putting on new hardware in February. Certainly cheaper than new cabinets!

Yeah, I used to hate Lowes, too... like eight months ago!

[superconnected]

41. Do you own it or does the bank own it.

Cool either way.

[LostinVA]

43. It's my house, that's all that matters.

[superconnected]

45. not if you lose your job and can't pay for it.

Seen it to many times to disregard it. I'm buying this year and I'm going for a very small place.

Hopefully you'll be fine, even if you don't recognize there's a difference between when it's the banks asset and when it becomes yours.

[LostinVA]

50. Seriously, why are you attacking me over something like this?

It's REALLY annoying. Even though this is zero business of yours: even if we both lost our jobs and had to get retail jobs, we still wouldn't lose the house.

Like someone else said in this thread: you have to live somewhere, and the house is cheaper than ANY rent we could get.

Jesus, it's like you're going out of your way to try to ruin my good feelings about owning a house. Whatever. Some people just have to be negative about everything.


on edit: and please kept your damned assumptions about my intelligence to yourself, got it? I believe I do know the difference between when a mortgage is paid off and when it isn't. You are being a major tool, seriously, for no real reason I can see.

[the other one]

59. You sound desperate

to convince yourself that buying a house was a smart move. It may be. But investing in a house is bad news, and many who thought they were buying a house have merely picked up an overpriced investment. The difference between a house and an investment is liquidity. If the housing market goes bust it may be impossible to sell a home at any price. In that sense a house is no investment at all. A house is a place to live. It doesn't matter if the value goes up or down if you can pay for it and you feel like you are paying a fair price.

The downside in the future will be property taxes. Taxes on real estate should increase as state and local governments find it increasingly difficult to raise money. It will be hard for landlords to pass tax increases on to renters resulting in lower profits and a stalling market. A perfect storm of bad news for real estate is on the horizon. None of which matters if you like your house and can afford to maintain payments.

[LostinVA]

62. Errr.... not at all, I know it was a very, very smart move

You're as bad as the other poster, trying to take the joy away from of someone. So, I'll say the same to you: keep your unwanted no-fact-based opinions of me and my life to yourself, okay? This is a discussion board, not a personal insult board. Geez, what's up with you people???

SA bad investment? How? I think someone is projecting, or just wanting to try to be mean. So, instead of pissing away rent to pay a landlord's equity, I have a nice house, a deductible, a mortgage way lower than my rent, a brand-new roof/heat pump/hot water heater/appliances, etc. I didn't buy it as an "investment," I bought it as a home, someplace to live, that gives me something in return. I got a great deal on my house, and I'm extremely happy. YOU'RE the one trying oh-so-desperately to tell me I don't get it.

Oh, re: rent. In five years mine went up by 41%. This is a landlords' market and always will be. I got my gas heat included. I was told yesterday that that apartment complex now makes you pay them $200/mo. extra for heat.

SO to reiterate: I love my house, NYAHNYAHNYAH. Go try to piss in someone else's cornflakes. (your qualifier at the end seems insincere and tacked on, after you spent two paragraphs telling me I'm desperate and ignorant).

I'm 41-years-old -- why do posters on this thread think they have a right to treat me like I'm stupid, and lecture me like I got a house with payments I can't afford? Get over it people and go volunteer or something. Jesus.

Actually, I'm putting you on Ignore, too, because I consider your post insulting and obnoxious.

[pokercat999]

70. I moved to SC last year my house in VA is still on the market.

I just got this year's tax accessment........$5000.00 OVER my asking price! New law in VA has counties accessing at full market value. My house is on a lake and should sell this spring, I missed the buying season last year by listing my house in the fall. Some unexpected surprises in SC, the water/sewer bill $80 month in winter $160 in summer with the lawn sprinklers on. Gas bill last month over $300 and it was a WARM month. My HOA dues doubled this year to over $800 annually.
As soon as the VA house sells we will be looking for some acreage to build outside of HOA controlled subdivision, where we have a well and septic. We have discovered we could live in a house that is half the size of this one and our next one will be much smaller.

[npincus]

55. same here!

I love our house... although it is teeny tiny, we live in a small city in a carraige house on a historic cobblestone street with a small backyard (more like a patio) but consider ourselves really lucky to have it... the market here is mainly condos and (expensive) brownstones, so the oppportunity for us to have a home here was unusual. We had to fight for it (long story) because the Seller's lawyer tried to f*ck us out of our contract (they probably got a better offer for the place)... my husband and I filed a lawsuit and put a liens on the house so they couldn't sell it to anyone else.... and it WORKED! They re-instated our contract! The bastards.

We have a 20-year fixed at 5 3/8%. We are paying about the same that we did at our old, smaller condo. We have a lot of expenses... big water and sewage bills, homeowners insurance, flood insurance (we live in a flood zone- we have to get it)... our roof sprung a leak... bla bla bla, but we are really glad to be here.

We usually go to Home Depot, not Lowes. Best of luck to you in your home!

[LostinVA]

60. *gasp* Your rate is better than mine!

We go to Home Depot, too -- Lowes is just closer, as is a little local hardware store.

Our home is little, too, but it's big enough... and our (smallish) yard is mainly trees, which is great... except when you're raking 'em!

[LostinVA]

23. And, I'll be getting a NICE tax refund this year

For the first time EVER!!!

[superconnected]

46. I get big tax refunds evey year and I haven't bought yet.

I can't guess...

Maybe because I support others - my mom, my niece and my great nephew moved in with me, it contributes to the tax refunds. That must be it.

[LostinVA]

51. You're on Ignore now

I can't fathom why you're insulting me out of the blue.

[calico1]

30. See my post above.

Sorry.

[thinkingwoman]

34. no apology required

your qualification explains it all. :hi:

I think you are right about people buying too much home and then additional toys, but that's not who the zero down programs are aimed at. And, frankly, I'm not sure people with incomes high enough to buy a boat and SUV would qualify. I know they wouldn't qualify for the loan I got.

I think it's important to avoid stereotyping and get facts out in the public realm. This thread is helping to do that.

Peace.

[calico1]

37. I work in the payroll dept. at work.

We have an issue where like other companies we are cutting expenses. So overtime is out unless absolutely necessary. There are employees who were working overtime for years and buying stuff and basing their living styles on the overtime, although the finacial experts always tell you not to. So now they are pissed that the company is "screwing them" out of overtime and now they can't afford the payments on some of the toys. That's where some of my thinking came from.

[thinkingwoman]

49. and that's valid

I absolutely believe there are people who do that. It's frustrating. But there are fools born every minute.

[Dave Reynolds]

66. Hard to put away much,

when rents in my area are hard to come by for less than $1K a month.

I pay $1300, which still puts me 20 miles from work. Anything closer rapidly goes over $2K, unless one wants to live in a tiny apartment.

[superconnected]

4. since 85% of home buyers lose their homes anyway

-a number I keep seeing in the financial section of the paper, I guess banks don't plan on people buying homes, just paying the "rent" mortgage.

[LostinVA]

13. I sincerely doubt 85% of home buyers lose their homes

I doubt it was that high during the Great Depression.

[superconnected]

42. I stated this wrong, I read that 85% sold or refinanced before paying off

the mortgage. That's a lot different than losing their homes. Right now I'm looking at a number where 30% do this in the first 5 years.

I'm looking for the 85% number and where I read it. I read a lot of financial articles.

[Strawman]

14. What?

"85% of home buyers lose their homes?" That can't be accurate.

[napi21]

5. How many of them were just rolling real estate as a business?

I've read a lot about people who quit their WELL PAID jobs to simply buy and re-sell houses because of the hugh profit in a very short time?

If you're playing the profit game, and intend to roll over that house in six months or one year, it's sure to your advantage to pug no money down! There was a lot of this going on in pockets of America where housing prices were rising dramatically!

[bigscott]

7. some of us

(me) put 0 down and used the money i was going to put down to renovate the house i bought. I got a 30 year mortgage at 5.5% with the renovations, the house value increased 30% in the first year alone. I plan on staying at least 10 years - will sell sooner and move to europe (old or new) if things in the good old US of A dont improve in 2006-2008

[ckramer]

8. What's your monthly payment on this house? n/t

[LostinVA]

15. I think that's an extremely personal question

And none of any DUer's business. Like the above poster, I have a 5.5% fixed 30-year, put down 1%, have a house payment much less than my rent payment was, in a nice, low-tax area. My mortgage is affordable, because In don't live in SOCAL, and because I did NOT buy "too much house." I bought the size I needed. I have more extra money every month for savings than I have ever had in my adult life (I'm 41).

[mike923]

39. plus

If you are only paying 5.5% in interest on a mortgage, it actually would be prudent to put less down on a mortgage, and invest in the market the balance. On average, you are going to get a higher rate of return in a mutual fund than 5.5%.

They were giving away money very cheaply the last couple years, so it makes sense to take advantage of that by borrowing more.

When interest rates go back up, this trend will reverse.

[bmbmd]

53. Exactly-don't waste good money on a down payment.

Keep it liquid. If you lose your house, for some reason, or let it go back, or have to rent it out-you haven't lost any cash.

[colonel odis]

16. 4 years ago, i put $0 down and got 3% to pay toward closing costs.

first-time buyers can get a 103% loan, which worked great for me.

now i've paid $32K down in principle and am just about to refinance to get my p.m.i. taken off and not have to put money into an escrow account.

so those things can work out well.

[LostinVA]

18. I got the seller to pay my closing costs

[thinkingwoman]

20. me too

they traded that for getting their asking price for a house that had been on the market longer than they liked (they were divorcing).

[LostinVA]

24. They did it if we didn't make them replace the carpet

We ripped it all out, anyway (we have three cats and bad allergies). My parents gave us a nice gift of laminate for the LR, and we've tiled, etc. the rest of the house... all with some of the EXTRA money we have every month!

We're so smart, TW... we could be buddies and go to Lowe's together if you lived closer.

[thinkingwoman]

32. That would be great!

Right now I'm using that extra cash to pay down credit cards and, gasp, start SAVING money. Once my daughter turns 18 though, she'll start chipping in a token amount for room and board and then lookout Lowes!

[LostinVA]

38. You can just go and look

That's always fun!

[dapper]

21. my zero down 2 cents..

5 years ago my wife and I had great jobs and we went with a 0% down mortgage. With Taxes our Mortgage was $1,600 per month. No Problem... until my company outsourced and my next job was at half the salary :-(

We struggled with Day Care, Mortgage Payments..etc. When I could I would put extra towards the principle. Thanks to a rising housing market, my house is worth $100k more than when I first purchased it.

We are actually a week and a half from closing and then two weeks from closing on our new home, thankfully with money to spare.

there are some markets that are just too rediculous.

Dap

[Seabiscuit]

25. No wonder foreclosures are up this year.

[AlCzervik]

29. it's going to get worse when the 0 downm interest only apr start coming

due this spring will be some of the first interest rate changes depending on how their loans are structed, many are locked in at 1 year, 3 year or 5 year fixed. Once that time period hits their payments are going up.

[thinkingwoman]

33. zero downpayment and no-interest

are two different loan types.

My zero down is at 6% fixed 30 year. No way would I take out a no interest!

Also, I bought an extremely modest home that left me money to spare in my monthly budget. Of course, I live in the midwest, not CA or the Northeast.

[AlCzervik]

35. well that was smart of you but many did not follow your example.

[thinkingwoman]

36. I'm not so sure

I'm starting to think that the common knowledge that "many" people are having trouble making the mortgage payments due to such behavior may be as false as the claims that people are running up credit cards and then filing bankruptcy even though they have money to pay them off.

We heard that ad nauseum prior to the passing of "bankruptcy reform" and it's all bunk.

I think the increase in foreclosures is more likely caused by long term unemployement and underemployment. But that's just my opinion.

[LostinVA]

63. I'm agreeing with you -- especially since many on this thread

Seem to confuse zero-interest and low down payment. Low down payment homes are specifically tailored to HELP people not rolling in dough be able to buy a house. Geez. I know people who make even less money than I do, some who were laid off, had medical bills, etc., and no one lost their houses... they just cut back for a while... you know, like people have been doing forever?

Remember: zero interest is NOT THE SAME THING as low down payment loans. It helps if you get a great rate, too. I couldn't have done this at 12% interest.

[rucky]

31. Well, yeah. There's a HUD program that helps first-timers. nt

[Yavin4]

47. There's The Economy Right There

That's all you need to know about the so-called great American economy. It's all borrowed money.

[Canadian_moderate]

54. good luck to all those 1st time buyers

I think here in Canada the minimum downpayment is 5% of the purchase value. I don't think we have interest-only mortgages and the amortization period is usually 25 years.

Are mortgages in the US with little or no downpayment subject to extra insurance charges or fees? On my first house in canada there was an additional charge (CMHC - Canada Mortgage and Housing Corporation) of roughly 3% because my downpayment was less than 25% of the value of the house, thus making the mortgage a higher risk. Luckily I was able to manage more than 25% on my second house and saved myself the extra charges.

As it turns out, my 25% equity ($62,500) of roughly cdn$250,000 has grown to roughly 61.25% ($245,000) equity of the current value of around cdn$400,000 in just over 4 years. I've been able to increase my monthly payment and the remaining amortization period is now just over 10 years. I guess I have been lucky, but I also did not risk over-extending myself. At the current prime rate here in Canada, my currently variable rate is 4.15% (prime rate 5% - 0.85%).

While these schemes allow the less wealthy a chance to own a home, it is a double-edged sword. Too many people will generally over-extend themselves and risk bankruptcy.

[Gormy Cuss]

57. To answer your extra charge question, yes.

It's called private mortgage insurance and unlike interest on the mortgage, it's not deductible from income taxes. Low down payment mortgages do allow more people into the ownership market but too often they are the vehicle used to qualify people who really aren't ready for it. Up thread there are several DUers posting how this arrangement worked for them, but as a broad trend for first timers it's very scary.

[SixStrings]

61. Imagine if we could deduct our mort. payments like the

USA - That would literally change my life.

Are any of the parties advocating that this election?

[Canadian_moderate]

71. Not sure if it's an issue

Though with low interest, there is less to deduct anyway.

The thing in Canada is that the profit on sale of your primary home, even if you do not purchase another home, is not subject to capital gains taxes. I'm not sure how this compares to the USA.

If interest is tax deductible, then rent payments should be equally tax deductible. It would seem to disadvantage those who rent.

Canada also does not have inheritance taxes like the USA. Besides some probate fees, we do not have to pay any taxes on the money or property we inherit. I think the US gov't makes up for it in other ways.

[sendero]

56. All of the anecdotes to the contrary here...

... don't help the fact that these low-qualifying loans are LONG TERM BAD NEWS for everyone. Despite the fact that DUers are good borrowers, way too many of these folks are not. And when housing takes a small hit in prices, or doesn't appreciate the way it was anticipated, lots of people will be "upside down", a situation that is bad for everyone.

Interest only loans, ARMs, zero down, all of these are going to contribute greatly to instability in housing prices, and there isn't a credible expert who is arguing otherwise. These instruments are the direct result of Freddie Mac et al trying to do anything and everything to keep the economy afloat. In the process, they are fueling housing speculation with easy credit (an "investor" can speculate with tax money, and if the deal goes bad, walk away and let everyone else pay)

These scenarios always end badly and this one will be no different.

[prolesunited]

58. It's not always a bad thing

I got a house in 1997 with an FHA loan and was required to buy mortgage insurance. I bought less house than I was qualified for and it's very modest in a working-class neighborhood. It was a 30-year loan with an 8.5% interest rate.

When the rates dropped in 2002, I refinanced at 5.25% and the house had grown so much in appraised value that I was able to drop the mortgage insurance. In the end, I was able to go to a 15-year loan for just a little more than I was paying before.

Given the way the market is now, I feel VERY fortunate. My brother is looking for a house now and he's coming up with absolute crap for about the same amount I am paying.

I'm not saying it can't be risky, but if you're cautious and disciplined, you can make it work for you. Then again, I'm not in a hugely over-valued market. There definitely is more risk there.

[LostinVA]

64. Same with me -- FHA and I bought lower than I was qualified for

I could have bought a house worth almost $40k more. And, like you said, if you're not in SOCAL, etc., you can still get some decent deals. We aren't talking about $400,000 houses here. Or even $150,000. At least for me. My house was decently under $150k.

And, FHA made me jump through a million hoops, so I don't think I would call myself a risky borrower, and they knew that, too.

[Josh]

65. "So you don't work on a contingency?"

"No, money down!"

[Yavin4]

67. These Aren't All Humble First Time Home Buyers

Most of that 43% are rank amateur RE speculators who either bought some idiot's book or went to some assinine weekend seminar telling them how they can get rich quick. So, they buy these houses with no money down and they look to flip them right away. This is all well and good AS LONG AS INTEREST RATES ARE LOW. However, interest rates are moving higher.