Banks and mortgage lenders are now starting to require higher down payments if a borrower wants to buy a home. It could be anywhere from 10% to 30% down. Banks are trying to minimize the risk they are taking in case the prices of homes continue to decrease. In addition, a higher down payment also discourages delinquencies. During the boom many home buyers placed little or nothing down.
Home buyers who cannot afford the higher down payments are looking for other types of loans such as FHA or VA. FHA backed mortgages require 3.5% up front. However, these type of mortgages require private mortgage insurance and often are offered at higher interest rates. This makes monthly payments higher.
Loan guidelines for condominiums have also changed. Interest rates on condos are higher as well as the down payment requirement. Keep in mind that most condos have homeowner associations with additional fees.
If you are looking to purchase a home, check with a mortgage lender to see what options are available for your specific situation. If you cannot afford a loan right now, they can tell you what you need to do to be able to purchase a home in the future.
To compare Florida mortgage rates from different lenders go to http://www.bankrate.com.
Tammy Hayes, Sandals Realty, Punta Gorda, FL email@example.com