anyone else struggling to buy a place to live in the LA area? the realtor is telling me a JD mortgage with low will make my offer less appealing. has anyone had that experience? there’s no way i’m getting near a 20% down payment on these high prices any time soon.. not sure if i should just give up and try another time

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for what it’s worth I am in LA and bought a townhouse back in june 2021 with 10% down

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Look into citi's personal banking program. I would guess the realtor just wants to plug their recommended finance guy for a couple points on the deal. Realtors are greasy.

But also the housing market right now is brutal for buyers.

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^^ this i would consider ditching the realtor tbh

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I heard the same from several realtors when buying, but I think it’s bullshit. The actual down payment effects the Sellers in no way as they are receiving full payment at closing. You’ll pay earnest money pre-closing, but that’s different than the deposit. I suspect the logic is higher down payment = generally increases the amount you can borrow = higher commissions for realtors.

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The issue is that if you only have 10% down or whatever, sellers know you absolutely need financing and they’re concerned that you’re not a shoe-in for financing to be approved and they may have to go through the whole process, the lender drags it out, and ultimately the financing falls through so they have to start all over again in 2 months. Whereas all cash investor needs no financing and can close tomorrow, 40% down person is going to get financing with no issue in 3 weeks etc.

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From a seller’s perspective it shouldn’t matter what your DP is and if you’re confident in your loan going through you can waive financing and then seller really shouldn’t care.

We bought with 15% down using PB and waived financing but not appraisal. Had we not waived financing I think it would have been fine in that the seller would have accepted but we waived because we came in $50K under asking

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There can be an issue if the appraisal comes in below the agreed price. That makes the JD mortgage offer not as good as some others.

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Buyers putting more down are less likely to run into issues with securing financing, which makes their offer stronger all else being equal. Down payment amounts are commonly included in offers.

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OP call Josh Altman.

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I can recommend a realtor - Allie Hayes at Aronski group

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