Real Estate News Blog

There is some misinformation in the media lately about the required size of a down payment for a mortgage in today's market. According to the National Association of Realtors, here are the facts: There is some misinformation in the media lately about the required size of a down payment for a mortgage in today's market. According to the National Association of Realtors, here are the facts:

• An individual may be required to put down 20 percent based on that person's financial situation but that's not a requirement for all buyers.
• A borrower who puts down less than 20 percent is required to obtain mortgage insurance.
• Even in a declining market, a borrower is required to make at least a 5 or 10 percent down payment.
• FHA requires a 3.5 percent down payment by borrowers, so long as they meet a 31 percent housing cost-to-income ratio. In other words, anyone who stays within their budget and who can afford a 3.5 percent down payment (even with famly help) can become a homeowner.

Lunds is coming to downtown St. Paul, which hasn't seen a grocery store in decades. The news is great for the city and its 14,000 downtown residents and 65,000 workers. In addition to long-needed access to a supermarket, the store will help boost the tax base, attract new residents and contribute to community building. Lunds Food Holdings said it will build a 30,000 square-foot store as part of an $88 million mixed-use project called the Penfield. Other supermarkets located in urban developments have shown that they encourage walking and buying smaller quantities of food more often. In addition, a downtown market offers a psychological lift as it signals that a developing urban neighborhood is succeeding and encourages condo shoppers to seriously consider living downtown. Full Story: Star Tribune (may require free registration)