During the housing boom, it was easy for buyers to get in over their heads. The government pushed for homeownership, and nearly anyone could get a mortgage with no money down – and they didn’t even have to prove they could pay it back.
We know how that ended. And now lenders say ‘no more.’
The median down payment required by lenders swelled to 20 percent late last year on conventional loans, according to Zillow.com. Compare that to 5 percent in 2007.
The increases have buyers turning to non-conventional loans, such as FHA and VA, which require less money down. Typically, however, there are downsides to those types of loans, including higher fees and higher interest rates.