I think the concern you should have & talk to your agent & have him/her talk to the buyer's lender is that of the buyer's DTI (Debt to Income Ratio), it may not be a matter of the buyer not having enough for their down payment, but maybe they have more expenses than they originally told their lender (too many expenses, not enough income) & now maybe they're scrambling around to pay off some collection.
talk to your agent & get down to the nitty gritty with the buyer. You know what, or get them off the pot & get a qualified buyer to work with.
Your Listing agent(realtor) need to know who he's getting into escrow with to avoid waisting time for you and the buyer.
If this one doesn't close make sure to look at the buyers credit, income, money in the bank and the down payment they're willing to put to buy your home.
Loans are not easy these days and when you do have one you need to be cerful.
Sorry to hear that your deal may be falling apart. If the buyers need a referral to a great lender, let me know. It would be my pleasure to pass on a couple of names of great lenders who actually close loans in under 30 days.
Regarding LTV, actually in California most new homebuyer's today are using FHA loans. If they are taking full advantage of the minimum down payment required, then their LTV would be 96.5%, as FHA only requires 3.5% down (and even that can be a gift from a relative). Most conventional lenders are looking for 20% down, which leads to an LTV of 80%.
Even with the drop in home prices, requiring 35-50% down to purchase a home would take most home buyers out of the picture. Unfortunately, in California, we have a very low savings rate and most people find it difficult to amass over $100,000 for a down payment.
Hope this helps, and please let me know if they buyer can use a referral or two to a great lender. I hope you are able to hold this deal together and get your home sold. Dare to Dream.
Your Real Estate Consultant for Life
RE/MAX Palos Verdes Realty