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During the recent lending crisis, brought on by the unregulated lending of the boom period, lenders have become phobic of taking any risks.  Thus, most lenders are requiring larger down payments, often 20% or more.

If you do not have much cash to put down, consider FHA financing.   FHA has raised their conventional loan cap (temporarily) to $729000 and FHA can require as little as 3 1/2% down if you qualify.   Check it out as an option.  FHA is making loans possible for many people who could not have found a loan six months ago.

We hear bad news every day regarding the real estate market and the economy, and yes, there are challenges.     But here is the good news:

In the lower end markets in Marin and Sonoma County, prices have been hit so hard that finally many first time buyers who were priced out of the market are now finding that they could afford their first home.   Those who do not have big down payments are being helped by FHA financing.   FHA raised its lending cap (see previous blog) and now we are seeing many more loans being processed by FHA.   What are some of the benefits to first time buyers:  low down payments:  FHA requires as little as 3 1/2% down, and lower credit score requirements:  FHA looks at ability to pay more than absolute credit scores.  So, first time buyers and those who are not flush with big down payments are coming back into the market.

Investors are also seeing a big boon to this market.  Marin's market had become too pricey to translate into good rental investments.   Now, we are seeing strong investor values. 

Call me if you want more detail on either of these topics.