re: Can you still get 100% financing?

Hypothetical:

Say I want to purchase a home and have 5% available for a down payment. However, since I am going 30 yr. fixed, the 5% down won't really affect my monthly expenses. So, I opt to keep the cash in the bank. This means 100% financing......what's the difference in finaning $300k versus $285k? Virtually none.....except I keep some liquidity.

I do NOT see how this is irresponsible.

Now, applying for a 3n1 arm for a $600k house and I don't work for the FBI is fricking stoopid......(the FBI relocates personnel regularly and covers expenses - they buy your house and sell it)

quote:

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you buy that house for 300k, and say you lose your job and so do a good many other people and they are also forced to sell their homes. Home values drop, so that 300k home is now worth 280k.

Don't you see how this is irresponsible? If the bank has to foreclose on that home they are going to lose money so they are in bad situation. If you need to sell your home you have zero equity so you are in a bad situation.

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you are so missing the point. $15k (5%) will NOT make an notable difference.

AND, what if my $15k has grown while I have chipped a little away from the principle? Assume I have lost my job, say, 5 years later.

Again, NOT irresponsible.

If I was forced to put 20-25% down, then we are in a totally different argument. Either way you look at it, in this market, if the job is lost and you can't sell your house, BOTH you and the bank lose. Your 20-25% is gone and the bank has to deal with foreclosure porceedings.

Your scenario is more doomsday based and very few people can prepare for that........liquidity is one of the only ways to prepare and putting it in the house you may lose takes that safety net away.