Yes, it is definitely possible, you just need a good buyer's agent to help you through the process and write up the offer correctly and to your advantage. There are different strategies that we can use to help you get your offer accepted with a low down payment, depending on whether or not there are multiple offers on the property, how long the property has been on the market, etc.
I have even had clients recently get their offer accepted with just 7% down! You may or may not get the first offer you make accepted, but you should keep trying and you will definitely be able to find something!
Please feel free to contact me directly at (310) 717-1321 or JamieTian@RodeoRE.com with any other questions/concerns. I would be happy to email you a list of properties currently on the market in your price range, as well as show you any properties you are interested in, and guide you through the home buying process.
It is possible however, you will need a really good lender because your loan will require PMI (mortgage insurance) since it is less than 20% down. Also, if the property is a condo/townhome, then it may be just a little difficult (because of HOA financials). Again, a good lender is important.
In regards to the offer-- you need an agent that will guide you with an offer that is enticing to the seller (a good amount over asking price etc).
PS I also work on the Westside (LA, Westwood, Century City, Santa Monica)
Bre License #01712757
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Have a great day,
Heather Paul, Broker Associate, Realtor
The whole idea 'out there' that a buyer is Stronger or Weaker by what they put down has always infuriated for me. On my listings I will state clearly "We don't discriminate the type of financing you choose" & it should be like that throughout the land, but it's not, unfortunately. At the end of the day (closing), the seller gets the same net if a buyer puts $1 down or 20% down.
It is all in how your offer is presented to the seller, showing them that it doesn't matter What you're putting down, but that you're Fully Qualified, are willing to be Cross Qualified if the seller wishes & that you CAN close, the seller WILL get their money & everyone will be happy!
The buyer I'm referring to, who put 5% down, she called me after I answered a question for her here on Trulia too. :-)
Shoot me an email directly or give me a call if you'd like to discuss this further, I don't look back on this same Trulia posting for Replies or Answers posted after mine
Emily S. Knell
Realtor Since--- 1996
Realty ONE Group
It is not so much the down payment, as it is how the offer is written and presented.
An experienced Realtor will be able to walk you through your options, and what may be the outcomes of each.
For example, some sellers are weary of accepting all cash offers, as nearly 30% of these cash offers fall through during Escrow, for many reasons. Some examples are the all cash buyer requestng price reductions during the inspection period, or requesting high dollar repair requests.
A 10%, 20% or 30% down payment, should not be looked at differently than any other type of offer.
It all comes down to how the offer is written and presented by the experienced Realtor.
Talk to a buyer's agent, before placing your offer, or contact me to represent you. I don't charge a fee to buyers, when representing them.
Coldwell Banker Residential
CA BRE # 10921046
So do your homework Grace. Check out the HOA first. Even though you may have the highest and strongest offer, you have to make sure that the property and HOA is strong too!
Your agent should help you trudge through writing the best offer with the best terms and price for your circumstances.
All the best,
Likely is a funny word to use because every situation is different and it's ultimately up to you and the seller's if a deal is made... not the agents.
Are there competing offers for the property... higher offers can be more attractive to sellers, but the right amount to offer has more to do with the value and condition of the property, how it's priced relative to other homes in the area, how long it's been on the market, how eager the owners are to sell, and anything else you can think of that may bear on the outcome. The selling price has nothing to do with the asking price and its not the only factor to consider.
Sellers should be more concerned about the likelihood of a deal succeeding in funding and closing than the size of the down payment. Though some think that a larger down payment demonstrates a greater ability to pay, if a buyer has money in the bank and good credit a 10% down offer (or less) is better than one at 20% where the buyers are stretching their resources too far. However, cash offers from a buyer with proven assets are generally preferable to any financed offer as there are no loan contingencies to derail a deal... one less thing!
You'll also find situations where sellers are asking buyers to waive important contingencies like appraisals or inspections though you might think seven or eight times before agreeing to these types of terms.
Any number of other issues can also affect the outcome on an offer from things as simple as do the sellers like the buyers or think that they won't cut down the tree out front to a longer escrow and short-term leaseback to give the sellers time to find a new home or their not having to pay $500 for a home warranty policy.
People are unpredictable. There are lots of of ways to sweeten an offer and it's sometimes hard to say just what issue big or small will kill a deal. Just do your best to weigh all the factors and take advantage of your agent's experience in helping you make the decision that's best for you.
Also remember to not get too caught up in the moment.. If you've found the perfect home then do what it takes, but these are few and far between and there will usually be others.
Best of Luck!
It is possible, as long as your lender agrees.
We have a variety of strategies we use for buyers like you.
Contact us, and let's figure out a plan for you.
The SoCal Investment Real Estate Group
Sothebyâ€™s International Realty
License # - 01343854
The happiness of life is made up of minute fractions - the little, soon forgotten charities of a kiss or a smile, a kind look or heartfelt compliment. - Samuel Taylor Coleridge