No. of Recommendations: 0
I think that was too restrictive. In fact, when we bought our house 21 years ago, with 10% down, I don't think we met that qualification. But the house we bought was only about 1.5 times gross income and we were on career paths with likely increases in salary.

I bought a house in 1986 with a 3% down FHA loan which required prepaid insurance. A few years later when my equity was obviously over 20% I refinanced to get the ~60% of the prepaid insurance ($1450) back. That paid for the loan expenses and my interest rate was 1.25% lower.

That was the lowest down payment you could get without going to interest rates that were 2.5%+ higher and you had to have FHA to get that 3% down payment.

Print the post  


When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.