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Wells Fargo Proposes 30% Down Payment

Wells Fargo Proposes 30% Down PaymentOne of the largest mortgage lenders in the U.S. proposes a required 30% down payment be included in the Regulation Reform Bill now being discussed by our Federal Government.  As our federal deficit balloons to record highs, our Federal Government will decide if we should pay before we play.  Can you believe this?  This is the same government who has oversight over Fannie Mae and Freddie Mac not to mention the US Postal Service.  As the owner of a lonely, small property management company in Buford, Georgia, even I can see how juvenile this is.

Sure, the no money down or 3% down days are best left behind us.  With a few exceptions, I think buying a home at this time is a probably not a good decision.  The mortgage rates are creeping higher, the housing market has still not found a bottom, and many very smart people believe the dollar is headed for a lonely place by the end of 2011 or the 1st quarter of 2012.  As publicly stated by several mortgage lenders, there is an inventory that has not hit the market.  Look for this in the Summer to early Fall.  This could mean a drastic drop in housing prices again.

So, what does this mean to the average homeowner trying to sell their home?  Get it sold now before they place even more restrictions and controls on the mortgage industry.  Currently, the housing market is depressed due to the fact people can’t qualify for a mortgage.  Not entirely, but many well qualified people cannot get a loan.  As usual, governments and businesses overreact.  They went from giving away mortgages for free to taking hair samples to prove a healthy diet.

If your home has been on the market for more than 6 months, reevaluate your goals and consider offering Owner Financing, Rent to Own, or Leasing the home until we can get back to some sanity.  I’m not counting on that anytime soon.  Our property management company in Gwinnett County, Georgia has been filling homes with these strategies for years.  This is an ideal time with the mortgage companies tightening requirements and so many potential buyers looking for a home.

4th Avenue Property Management is a property management company in Gwinnett County, Georgia. We offer Property Management Services specializing in rental property management in Lawrenceville, Buford, Suwanee, Sugar Hill, and Dacula Georgia. If you are currently selling or renting a home, give us a call.