Homebuyers get frugal to save for down payment..but don't worry.

If you are thinking about buying, don't be afraid reading this article. Many of my clients are finding FHA loans with 3.5% down payment the best deal. Banks are still lending. I have not had a deal turned down!

The full article is here:
http://www.dispatch.com/live/content/business/stories/2009/02/15/saving_for_down_payment.ART_ART_02-15-09_D4_5QCT2QG.html?sid=101

clipped from www.dispatch.com Americans are saving more than they have in months, new data shows. And while that's bad news for retailers and restaurateurs, it could be good news for the crippled housing market. Many potential homebuyers say they've stopped eating out, going to movies, buying iTunes and other nonessentials to save money for larger down payments that lenders now are demanding. Lenders want buyers with between 20 percent and 25 percent of a house's price in cash, said Guy Cecala, publisher of Inside Mortgage Finance. Even loans insured by the Federal Housing Administration, a popular option for first-time homebuyers, now require at least 3.5 percent down, up from 3 percent last year. "Everybody in America better be saving if they want to buy a house these days," Cecala said.