Sacramento Metro Real Estate Market

Buyer Financing

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How buyers buy houses helps us understand the reasons for demand.  When escrow closes, a seller gets cash. So it’s the burden / nuisance of the borrower’s financing DURING escrow that matters to sellers.
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Buyer Financing Update
When a purchase is tallied as a “cash” purchase, it means the buyer used nothing BUT cash. What we don’t know is how much cash a borrower used when they also got a loan.
Conventional loans can include any amount of cash combined with their loan. But this is NOT a FHA or VA borrower. Typically accompanied by a 10-20% down payment, additional cash may be necessary in a competitive, seller’s market.
When the US government guarantees a loan, it gets special uses [and less cash required]. These FHA loans are not always popular with sellers. So, in a seller’s market, these loans decrease in number.
Of the benefits of serving in the US military, eligible veterans can get a 100% loan. These are also not popular with sellers as they come with stringent appraisal and condition requirements that can cost sellers. This preference is stronger in a seller’s market.

When sellers accept an offer that promises [or requests] different financing, such as “owner carry”, it qualifies as Other Financing.

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