How Are Buyers Paying For Homes?3/7/2017
Everyone that knows me, knows that I like spreadsheets and statistics. I guess that I would have been a good actuary. The real estate market has been really strong for us in the Greater Cincinnati, tri-state area and I would think the mild winter may have played a big part in that. Since we didn't have any big snows, ice or frigid weather, buyers just kept on looking and buying.
I wondered how people are paying so I looked back over the last six months at sales of detached, single family homes in the Northern Ky. area sold through the Northern Ky Multiple Listing Service. The numbers show that:
- 41.2% of buyers used conventional financing. Conventional financing used to mean at least 20% down but many lenders now have programs with far less required as a down payment.
- FHA financing is listed as being used for 23.6% of sales. FHA requires the buyer to have 3.5% down.
- Cash was used in 20.8% of sales.
- VA was involved in 4.8% of sales. Most lenders will ask buyers if they served in our military and if the answer is yes, then see if the buyers are eligible for VA financing before trying other options.
- USDA or Rural Housing was used in 3.5% of sales. This type of financing doesn't require a down payment but there are income limits for buyers and some areas aren't eligible.
Your area may be different but if you have any real estate questions or issues in Ky. or Ohio, please contact me
Frank Kramer - Licensed in Ky. & Ohio - 859-801-3088 - Fkramer@huff.com - www.Fkramer.com
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