3.5% down payment
It amazes me that after the incredible housing crises, that FHA loans still require as little as 3.5% down payment. On top of that, buyers are often demanding $3000-5000 cash back at closing, essentially making their out of pocket expense $0. In the past few months of our house on the market, we've had two offers like this. Both have requested sizable amounts of cash back at closing. While I understand that they may have good credit, the continuing drop in home values will only continue to put individuals into a hole they cannot escape if they are forced to sell quickly. This will inevitably lead to more foreclosures and further price drops. All because our government backs these loans. These guarantees are what put our housing market into the mess its in.