Low down payment is the trend for Boston condo buyers
A new report released by Down Payment Resource shows that 61% of first-time home buyers purchased their condos and townhouses with a down payment of 6% or less. The trend also applies to Boston condo buyers.
The report from Down Payment Resources noted that seventy-three percent of Boston first time home-buyers made a payment of less than twenty percent. Please note, when looking at Boston condos for sale and your planning a low down-payment you must keep somethings in mind.
- Find out what the owner occupancy for the condo building is. If you have a low owner occupancy this reflects badly on the condo association. In other words, banks are not likely to allow a low down payment on low occupied condos associations. Banks like to see a high owner occupancy as it reflects lower delinquency rate.
- Review the Boston condo budget. Banks like to see a strong financial reserve in the budget. Stronger reserves reflects the strength of the condo association.
- Review Boston condo meeting notes. This will show you if there’s any up coming repairs, major improvements, future capital expenditures which can hurt the condo association reserves and may lead to a condo assessment. A bank may require a larger down payment as result of this.
But fear not, low down payments are still in play and are very popular with the younger generation.
Among millennials who purchased homes, David Norris, Loan Depot’s Head of Retail Lending, said:
“It’s clear from the survey results that Millennials have a lot of anxiety built up about the home buying process.
There is good news, however, as there’s more flexibility than most Millennials think regarding how to qualify for a loan and what’s needed for a down payment.”
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Updated: 1st Quarter 2018.