Thanks To The Government You Can Get A $700K Home With A 3.5% Down Payment

CNBC spoke with Hovnanian President Ara Hovnanian about the state of U.S. home prices.

  • 0:35 The beginning of the year had a significant rally for housing, but with the tax credit expiring and other bad news we slowed. Now the market is seeing new strengthening.
  • 1:30 Affordability for homes on 30 year mortgages has never been better, with mortgage rates at 4.375%.
  • 2:25 If you qualify for a FHA mortgage, you might only have a 3.5% down payment on a home of $700,000 in the most expensive markets.
  • 2:40 It would be irresponsible to raise down payments now with the market so bad, but credit checks are more stringent than ever.
  • 3:50 Home prices have held up in the past few months, even though buyers have been nervous to enter the market.

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