Tuesday, January 24, 2006

43% of first-time home buyers put no money down

As adjustible rate loans start creeping up, many first-time home buyers will find themselves upside down, according to USA Today:

As housing prices soared last year, an eye-popping 43% of first-time home buyers purchased their homes with no-money-down loans, according to a study released Tuesday by the National Association of Realtors.

The trend is potentially ominous. The real estate market is cooling in some areas, and rates on adjustable-rate loans are creeping up. As a result, some no-money-down buyers could owe more than their homes are worth.


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