% down on home

[Russ_Boston]

I was asked to provide 20% of my purchase price upfront to begin the building with the other 80% at close in 75 days (give or take).

Did anyone else get away with only 10% and 90% at close? Hate to fork over that extra money when I could keep it in the bank (albeit at low interest rates:)).

[Dan =^..^=]

20% here.

[pooh]

20% here, too.

[laryb]

Count me in on the 20% too.

[Kelsie52]

I was told 20% which includes any upfront $ to hold the lot

[zcaveman]

It was 20% back in 2001

[Shimpy]

I was told that 20% was there policy whether paying cash or financing.

[kb8tpw]

Nice try Russ, can't blame you, but think of it this way - You are in good company. If that doesn't work wait until closing day and just imagine the goose bumps.....

[Russ_Boston]

Can't blame a boy for trying!

[bmarlo767]

You have to put 20% down to start but then you could work 10% with the
bank and get a refund at closing.

[YodaMom]

We just signed the papers on Tuesday and had to put down 20%.

[villages07]

Just as an aside, but, the 20% down requirement probably made/makes the Villages a fundamentally stronger community. It sure discouraged speculators during the boom times who were otherwise getting no/low money down loans. I think the 20% was a big contributor to the very low rate of foreclosures/defaults within The Villages.

[bkcunningham1]

Requiring 20 percent down on conventional mortgages, like in the old days before loans were given to people who couldn't afford them, gives you automatic equity in your home. In most cases 20 percent down does away with private mortgage insurance requirement on your part. More than that, it gives the lender a head start on recouping their loses in case you default.

[Pats2010]

Requiring 20 percent down on conventional mortgages, like in the old days before loans were given to people who couldn't afford them, gives you automatic equity in your home. In most cases 20 percent down does away with private mortgage insurance requirement on your part. More than that, it gives the lender a head start on recouping their loses in case you default.

:agree:

I think the whole world would be in better shape if the 20% rule was in place the last 10 years. There is no reason for people not to walk away from homes. They did not vest any real money.

[Boomer]

Just as an aside, but, the 20% down requirement probably made/makes the Villages a fundamentally stronger community. It sure discouraged speculators during the boom times who were otherwise getting no/low money down loans. I think the 20% was a big contributor to the very low rate of foreclosures/defaults within The Villages.

Good morning V '07,

The 20% thing would most certainly have helped during those nutso years. Also, do I remember correctly that TV put something in place that said that property had to be held for a certain amount of time? -- in order to prevent flipping or to discourage it anyway.

Our first visit to TV was in 2007 in the fall. Things were just coming off the high times when buyers had a half hour to make up their minds or it was on to the next one on the list. TV would have been a flipper's paradise for sure had something not been in place to prevent that.

Am I remembering correctly? Was there a required time for a buyer to hold property before selling or forfeit some or all of the profit?

Even though that might sound draconian to some, like the developer was protecting his own interests in selling new, in reality, such restrictions in place during those times would have protected everybody's investment by discouraging flippers who not only wanted to make small down payments but were after a dizzyingly fast buck. Slowing down flippers would have been a good move.

So anyway, I am depending on you V '07 to tell me if I just made all that up.

Thanks.

Boomer

[hoganth]

20% Here too! December 2008

[bkcunningham1]

Boomer, most paperwork from lenders still requires that you state the purchase use of the property. For instance, primary residence, second home, vacation, rental property, mixed use...that sort of thing. In the paperwork, it stipulates you have to keep it for that purpose for a set amount of time or you could be subject to fraud and automatically default on the loan agreement. IMHO, that is for tax purposes like short and long-term capital gains tax, rental property taxes as income and stuff like that. And just recently, the first time home buyers credit.

[villages07]

Boomer, yes, your memory is correct. Back in 06 when we bought (at the end of the :boom: ) there was a provision in the sales contract that if we sold within a year, all profits went to the Developer. It was an anti-flipping provision. Not sure when it started. By the end of '06, it was pointus mootus since values were declining. Not sure if it still exists today.

[elevatorman]

20% is what they charge no negotiation. They may let you put it on a credit card, then you get the points. I did this with my golf cart and paid the card off the next day for no intrest.

[Russ_Boston]

I didn't mean to ask how can I finance without 20% since I intend to do at least that and then pay off when my home up here sells. I didn't mind 20% or more at close but I thought it was high just to begin the process. But it is what it is so 20% will be the number.

[graciegirl]

Good morning V '07,

The 20% thing would most certainly have helped during those nutso years. Also, do I remember correctly that TV put something in place that said that property had to be held for a certain amount of time? -- in order to prevent flipping or to discourage it anyway.

Our first visit to TV was in 2007 in the fall. Things were just coming off the high times when buyers had a half hour to make up their minds or it was on to the next one on the list. TV would have been a flipper's paradise for sure had something not been in place to prevent that.

Am I remembering correctly? Was there a required time for a buyer to hold property before selling or forfeit some or all of the profit?

Even though that might sound draconian to some, like the developer was protecting his own interests in selling new, in reality, such restrictions in place during those times would have protected everybody's investment by discouraging flippers who not only wanted to make small down payments but were after a dizzyingly fast buck. Slowing down flippers would have been a good move.

So anyway, I am depending on you V '07 to tell me if I just made all that up.

Thanks.

Boomer

You are correct as usual Boomer. It is one year. There is a penalty for selling at a profit in less than one year..

Recently I went to see a home that was up for resale that was a year and some days old. I could not see any appreciable improvements, a pool, etc. The owner had the one year old house for sale for 125K more than he/she paid for it. Not furnished. Yes.You read right. One hundred and twenty five thousand dollars more than it was purchased for.

Hmmmmm.

[DENNIS G]

If you are eligible to go VA loan you can do this. You will have to put up at least $2,500.00 to start. That will lock you in, then go to a bank that does VA loans and finish the process. It is best to go to the bank first, get fully qualified and approved, then make your lock in, take the paper work to your bank and you will probably close within 30 days or less. The 20% is a required for Citizens Bank, (conventional type loans) Anything over 80% loans require PMI (Private Mortgage Insurance, if you default it will pay off loan).:welcome:

[Casino]

Boomer, yes, your memory is correct. Back in 06 when we bought (at the end of the :boom: ) there was a provision in the sales contract that if we sold within a year, all profits went to the Developer. It was an anti-flipping provision. Not sure when it started. By the end of '06, it was pointus mootus since values were declining. Not sure if it still exists today.

V7....yes this is still correct.

[Pats2010]

V7....yes this is still correct.

I love your avatar. I had a similar one a couple years ago on another forum.:coolsmiley:

[Pturner]

You are correct as usual Boomer. It is one year. There is a penalty for selling at a profit in less than one year..

Recently I went to see a home that was up for resale that was a year and some days old. I could not see any appreciable improvements, a pool, etc. The owner had the one year old house for sale for 125K more than he/she paid for it. Not furnished. Yes.You read right. One hundred and twenty five thousand dollars more than it was purchased for.

Hmmmmm.

GG, is it FSBO? Bet seller doesn't get his/her asking price.

[getdul981]

If you are eligible to go VA loan you can do this. You will have to put up at least $2,500.00 to start. That will lock you in, then go to a bank that does VA loans and finish the process. It is best to go to the bank first, get fully qualified and approved, then make your lock in, take the paper work to your bank and you will probably close within 30 days or less. The 20% is a required for Citizens Bank, (conventional type loans) Anything over 80% loans require PMI (Private Mortgage Insurance, if you default it will pay off loan).:welcome:

I don't think The Developers in TV will allow a VA loan. The seller has to put up a certain amount for someone to get one and they won't put up the money. Seems to me I read this somewhere, but I guess I could have dreamed it.

[Boomer]

Thank you V '07. I was hoping I was not making that up. I thought it was put in to stop flipping before it got a real hold. I think flipping is gone forever, but from later posts here it sounds like the clause is still in the paperwork.

Gracie, my goodness. That does seem a little odd. Well....actually....a lot odd. And you are right. I did have to read that number twice.

Boomer