Manchester Vermont Real Estate Blog

Last week, I discussed the great news about how low mortgage rates have dropped. I ended by suggesting to buyers that they scrape together a down payment and get started, but I realize that for some buyers coming up with the down payment can be a difficult barrier in the process of purchasing a home.

I asked our good friend, Lou Maguire, Mortgage Originator at Berkshire Bank, if he could provide some info on programs that they offer that do not require a substantial down payment. Lou came up with the following three options.

1. Berkshire Bank First Time Home Buyer

• Special Rate (currently 4.25% with no points or 4.0 with a point)
• $750.00 in bank paid closing costs with a bank relationship
• 5% down payment
• Maximum income $91,000.00 and purchase price $417,000.00
• Single family and condo purchase only

2. FHA

• 3.5% down payment
• Up to 6% seller paid closing costs
• 1% upfront mortgage insurance

3. USDA Rural Development

• 100% Financing
• 2-3.5% upfront mortgage insurance
• No monthly mortgage insurance
• (currently this federally subsidized program has ran out of funds; hopefully Congress will refund soon)

If you would like more information on any of these programs please contact Lou Maguire at Berkshire Bank at 802-549-5210, e-mail him at lmaguire@berkshirebank.com, or visit his website.

On to the weekly recap:

New Listings – 13 new properties came on the market last week ranging in price from $73,900 to $795,000.

Price Reductions – 10 properties were reduced in price with an average price reduction of 11.3%.

Under Contract – 9 properties went under contract last week, 2 under $250,000, 6 between $250,000 - $500,000, and 1 between $500,000 - $750,000.

Sold – 4 properties closed last week: one sold for $173,000 which was 96% of asking price, one sold for $230,000 which was 92% of asking price, one sold for $284,500 which was 95% of asking price, and one sold for $325,000 which was 88% of asking price.