One of the most common misconceptions about purchasing a home is that you need a 20% down payment to make it happen. However, while it’s true that the more you put down, the lower your monthly mortgage will be, it is absolutely NOT mandatory to put down 20%. In fact, as Freddie Mac puts it, “The most damaging down payment myth — since it stops the homebuying process before it can start — is the belief that 20% is necessary.”
According to the National Association of REALTORS®’ Profile of Home Buyers and Sellers, the median down payment amount has not exceeded 20% since 2005. Though it may be hard to believe, the current average down payment is only 12%. Moreover, when you look at first-time homebuyers, the percentage drops even lower to 7%.
What does this mean for you? As a prospective homebuyer, you now know that you are not required to put down a full 20% on your purchase. Also important to note is that programs exist for qualified buyers that allow them to buy a house with a down payment as low as 3.5%, as well as options like VA and USDA loans with no minimum down payment requirements for those who qualify.
Working with a real estate advisor is essential to understanding down payment assistance programs and what exactly you may qualify for in the homebuying process. For more information about your buying options, contact your local Surterre agent today at SurterreProperties.com.
Source: _Keeping Current Matters_
