I’m new to the forum, but wondering if anyone knows lenders who will offer 90% financing on a $1.7M SFH in the peninsula.
Our financial situation is we are easily qualified from an income perspective but a bit light on assets and cash on hand. It would take us another 6-12 months to save for a 15% or 20% down payment, which might be fine, but curious if folks have suggestions for us today.
https://www.unison.com/ will give you 10% down payment if you are willing to give up portion of your future gain.
Not that I advise this, just one option without paying additional interest and PMI.
I just did a refi with them and they seem to be quite resourceful. But will any seller accept 10% down on a 1.7M house? I would reject those offers if I were the seller.
Rental? How was your rate?
Cash out rental. 4.375% with 2-pt. I am self employed so rate may be higher than W2.
Thanks for the info. Just curious – as a seller why do you care how much the buyer is putting down so long as they are preapproved? You still get the full sum at closing.
Sellers care because people who put down small down payments don’t have as much financial resources as the ones who put down more. So if anything happened to their loan say appraisal comes below sale price the low-DP buyers may not be able to bridge the gap.
I honestly haven’t heard of anyone buying an almost 2M house with 10% down. The minimum I heard is 15% and the sale price is below 1M.
In today’s market, I would accept an offer with 5% down. The reason is that appreciation is slow and appraisal is not difficult any more. It is easy to appraise high in a flat or declining market.
So cash short buyers can buy all the houses they want today. I would rather buy with 0% down or 5% down at the top price to protect my principal
If you still haven’t bought, now you don’t need 10% down. You only need zero down.
How is this even a startup? They literally took lease option which has been around forever and are pretending it’s something new. Lease option is one of the biggest scams out there for potential buyers. I’m amazed anyone in SV thinks this is innovative.
That is true, but the lease to purchase options used to be only provided by certain sellers (or landlord). Now, you can lease option any houses on the market.
It is also true that most considered that a scam. But for some, it is a still a way to get in…
I remember seeing it pitched for landlords as a way to collect the contract fee upfront, collect higher rents, and very few people every execute the agreement to purchase. People are always optimistic their finances will be better in 3-5 years, and they’ll be able to buy. Most people never improve their finances, since they have the same habits.