The MYTH of 20% Downpayments

Many potential home buyers give up before they’ve even gotten started because they think they don’t have enough for a down payment. Oftentimes it’s because they’ve bought into the myth that you can’t buy a home with less than a 20% down payment. Many people think you must use an FHA loan for a low down payment too. NOT true! In fact, with a conventional loan, you can go as low as 3%! That’s lower than FHA’s 3.5% minimum. Plus, VA loans and USDA loans are as low as ZERO percent! Woohoo! Check out these myth-busters in this infographic (click the link to make it larger; may need to click it twice), and CALL, EMAIL, or TEXT me about purchasing a home now.

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1% listings. Just 1.5% total if I represent your buyer too.


Are you a first-time home buyer afraid to take the leap? You continue to pay rent – money that never comes back to you when you move. Goodbye money 💸!

You DO pay a mortgage though – your landlord’s mortgage! AND you pay for the repairs too. People who buy real estate to rent take into account mortgage and repair/maintenance costs and calculate that into their rental rates before they even buy an investment property.

With interest rates super low right now, it IS a good time to buy. Take this house (pictured above) I sold in 2015. It was a cosmetic fixer purchased by first-time buyers in Seattle for just under $280,000. It’s now worth over $500,000. That’s about $44,000 per year of appreciation! That’s REAL MONEY when they’re ready to sell – money they didn’t have to sweat for at a job. When they sell, all that rent they paid themselves will be returned to them WITH appreciation. 💰💰💰 Although they pay interest, the appreciation FAR outpaces the interest and they will walk away with a major profit. Contact me about buying your own home!

Outlook for Interest Rates

A recent economist I respect said we should expect deflation over the next two years with inflation at the 3-5 year mark. Of course, no one has a crystal ball! These are assumptions based on what’s happening today and many things can happen to impact and change this assumption. Over the next one to two years, we believe that deflation is probably more of a risk than inflation. We expect that the recovery from the coronavirus downturn is likely to be slow, keeping inflation and interest rates low. As the economy mends, the Fed will gradually unwind some of its emergency lending. As loans get repaid, the Fed will let some of its holdings roll off its balance sheet, and start lifting interest rates—perhaps two or three years from now. We expect the Fed to keep the federal funds rate pegged near zero for at least two years, and 10-year Treasury yields to remain under 1% in 2020 and under 2% in 2021. Let’s remain positive and rooting for our communities and nation!