Soft Market = A market which has more sellers than buyers. Low prices result from this excess of supply over demand. also called buyer's market. opposite of seller's market. (Source
soft market Definition )
Right now we are looking at Soft Market as meaning a lot of houses being on market and not enough buyer. Its now call a Buyer Market.
Please check the Countrywide's Soft Market Category to determine if your house is in the declining Market.
https://www.cwbc.com/ContentManaged/...oftMarkets.pdf
Category 5 =
10% Down payment because lenders only accept minimum of 5% down payment plus 5% down payment for declining market.
Category 4 =
10% Down payment because lenders only accept minimum of 5% down payment plus 5% down payment for declining market.
Category 3 =
5% Down payment will be required for declining market and supporting information as Oversupply and been in Marketing time over 6 months
Category 2 =
5% Down payment will be required for declining market and supporting information as Oversupply and been in Marketing time over 6 months
Category 1= 5% Down payment will be required for declining market and supporting information as Oversupply and been in Marketing time over 6 months
Not on the list =
5% down payment required. No other requirements foreseen.
These are determined by Mortgage Insurance. They decided that 0% down payment is a huge risk in long run and cut off that program. Means they required 5% down payment on any loan.
On top of it, if declining market, we must add 5% down payment along with supporting documents.
Now down payment is required. Housing market is declining, means more house are in affordable range now. Many houses are in foreclosure/short sales and procedure is long messy process. Some bank accept Down Payment Assistant, depending on what program in order to avoid finance hardship.
Soft Market = Buyer Market.
Stay tune for next topic regard of foreclosure and short sales. Tips how to avoid foreclosure and what is short sales.