Posted by JMS/.MN on February 04, 2012 at 18:57:33 from (209.237.107.155):
In Reply to: Land prices? posted by WJD on February 04, 2012 at 17:58:33:
There"s a big difference between now and the 80s. Primary thing is lenders are not making loans based just on collateral. Buyer needs a substantial amount down, and adequate cash flow to make the payments, plus a cushion. Not the risky loans of before. Why did the housing bubble burst? Homes sold with nothing down, unverified income, improvements financed by equity. With 20% down, the buyer has more incentive to live within means to make payments.
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