Financing troubles.....

[CalicoFarm]

I'm selling my home and I'm on the second person that is having trouble getting financed. The first one had 10% to put down and this one has 20%. Both of them, from what I was told, have good credit. Anyone else having problems getting financed?

 

[LauraG]

Yes this is common. The banks screwed up so bad they are paranoid about lending now.

I sell rural land for a living and most people need 30% down to finance land. I'm suprised 20% down for a mortgage, seems like alot, but houses arent my thing. Good luck, its a tough market right now....

 

[sfw2]

Mortgage lenders are still lending money to qualified buyers with a 20% downpayment and "good credit". However, too much credit, even if it is "good", is a bad thing. Something is keeping these folks from qualifying, and it's not that the lender doesn't want to make good loans.

If this deal doesn't go through, you might consider requiring a mortgage preapproval (NOT just a prequalification letter) as part of the next buyer's offer to purchase.