Down payment requirements have loosened significantly over the past year, prompting some consumers to raise concerns about a return to pre-crash standards. However, these concerns are not shared by market experts, as a recent survey of more than 100 analysts showed that 96 percent feel mortgage credit access over the next 12 months will remain at sensible levels.
“It’s important to know the difference between down payment requirements and underwriting requirements. While you no longer need 20 percent to qualify for financing, you still have to provide ample and detailed documentation that proves without a doubt you can pay back the loan,” said Steve DiMarco, president of Key Mortgage Services Inc. “After the housing market bubble burst, the industry became extremely conservative; these changes are simply bringing us back to a more sustainable middle ground.”
Key Mortgage Services, Inc. provides access to multiple loans and down payment assistance programs that give potential homebuyers the opportunity to buy. For more information about these programs, contact a Key Mortgage loan officer.