Sellers are favoring offers with 20-30% or more down.
This is a sad reality for first time buyers and their agents.
VA buyers are not required to put ay money down
FHA buyers and put down as little as 3%
Some conventional loan program offer low down payments
BUT, getting an offer accepted with less than 20/30% down will remain hard as long as the investors are l dominating the buying side of the market.
The Real Estate market goes through waves all the time. We are currently in a seller's market, and one in which investors are vey active and gaining the favor of sellers looking to sale fast. Combined with limited inventory the current market is not too friendly for the first time buyer.
My advice to first time buyers:
Stay engaged in the buying process. Be patient. Do not get your heart set on any one house. Look at it as a numbers game. Be prepared to write several offers.
Kawain Payne, Realtor
If your pertaining to the Long beach program, you need at least 1% of your own money.
Otherwise, if you're talking in general, it's the same with any other cities on different
program like FHA, VA, etc.
Hope this helps.
If you looking for an entry level home, say under $350,000 - $400,000, be aware there are many cash buyers still participating in this marketplace. Many sellers will accept a lower all cash offer over an offer where the buyer must acquire a loan.
The way to combat the all cash buyer is to offer a fair-market price, place a larger down-payment, have your pre-approval letter in-hand from a direct lender, and be able to show proof of funds that you have money available to cover that will cover taxes and mortgage payments for the next 6-months!
I hope this helps.
First Team Real Estate
Now, ask me if you can win a multiple bid scenario with these loans, and these days, the answer is often 'no.' Thus, if a first time buyer wants SUCCESS in today's ridiculous buyer's market...chances are they have put 10% or more down.
This market is just not kind to first time buyers.