Over four years have passed since the values of real estate reached their peak and people still remember clearly the historic plunge of the price of homes. Banks are increasingly imposing stricter standards after having to shoulder heavy losses from home loan defaulters. All types of applicants are required to pay relatively higher down payments and have higher credit scores.
Investors disappeared from the scene and consequently mortgage products that boosted the private real estate market also disappeared. However, this does not necessarily mean that you need loads of cash in order to secure a home loan. The US government is giving guarantees that enable many people to receive mortgages without making any down payment.
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