Will the credit crunch forever eliminate 100% financing? That’s what many lenders are insinuating lately, anyway. While some unique programs may always be available, it is quite possible that the no money down deals will fade away, as too high a percentage of them are slipping into foreclosure.
While all of this may seem like a bad thing for our economy and for real estate (as the media wants you to believe), I feel that the market and the industry are now in a self-cleansing mode. In the end, we may have less sales, but we will also have less foreclosures.
If you will be buying your first home within the next few years, now is the time to begin saving, have a monthly personal budget, and stop wasting money on things which may bring you immediate, but no long term satisfaction. Who knows how much your lender will require as a downpayment by the time you buy? Save now!