Metro Area: Surplus Sales Boost Housing Market

What Buyers are finding is a lot of choices and lots of room for negotiation! Plus, interest rates are still low so what has changed? Falling homes prices, and several houses on the market for every buyer, not the other way around. Stricter mortgage standards mean that lenders are verifying borrowing power. A year ago, no downpayment? No Problem! Today? Not so simple! MN Mortgage Association President Tom Bendel said 100 percent financing has all but disappeared. He advises borrowers with good credit seeking a conventional loan to come to the table with a 5 percent down payment. borrowers with credit scords below 700 may need a down payment in two figures. Where even poor credit could get you a house a year ago, buyers may need an FHA loan, with loan limits having been increased through the end of the year in the Metro to $365,000 (with the rest of the state at a $271,000 limit). A year ago, buyers could make an offer that sellers couldn't refuse. Today? Buyers take their time and offer 10 percent less but they need to count on their financials being thoroughly checked out. Buyers in today's market can afford to be conservative and buy smart.