Living in Portland

The answer is, you do if you want to buy a house.  The old days of 100% financing are just about over.  Buyers are now going to have to invest their own money into buying a house.  The Seller can still pay the closing costs which add up to about 3% of the purchase price. 

FHA loans (lowest down required) now need 3.5% of the sales price as a down payment.  This can be gifted from a relative but not just anyone.  Most conventional loans want to see 10% down, and you have to prove that it is your money by providing bank statements from several months back.  If you are asking for a loan amount over $418K, you will now need 25% down.  And don’t forget about the credit scores!  The minimum number keeps rising.

The good news in all of this is that there are some great bargains out there and interest rates are still low.  If you have a down payment and good credit history now is the VERY BEST time to buy.

Investors are now entering the market to scoop up the bargins and invest in the instant equity and long term appreciation.