Negative Equity: 16 Million Homeowners Underwater
I'm "under water"
I just used my VA loan, and the VA fee was $3000. I've only made my second mortgage payment and I'm technically underwarter right now because of that fee.
It's not unusual for new home purchases to (start out) under water with various fees, like closing costs.
With the $8000 first time homebuyer stimulous check, I'm quite sure a rise in new home puchases are part of that equasion.