Having 20% to put down on buying a home is great, but it's certainly not the norm in today's market. Still, many buyers think it is and that may be keeping some buyers back from buying a home. This seems to be especially true for younger buyers.
A whopping 39% of non-owners say they believe they need 20% saved for a down payment in order to buy a home. Another 26% think they need 15 to 20% down, and 22% think they would need 10- 14% down. These statistics come from NAR's 2017 Aspiring Home Buyers Profile report. It is hard to believe that so many buyers don't know that they can actually afford to buy a home NOW.
That myth of needing so much down is just that, a myth! The actual average down payment in 2016 was 11%. That is just an average! A lot of buyers are paying much less than that down. First-time buyers need to know that there are FHA loans that require only 3.5% down and for some areas and buyers, you can get 100% USDA loans!! And let's not forget about the 100% VA loans! In fact, in that same report, 16% of buyers under the age of 35 put NO MONEY DOWN to buy their home!
The actual amount a buyer needs depends on their situation, the property and the price of the home they are looking for. But there are many mortgage options that offer the opportunity to make low or even no down payments. These loan programs don’t require perfect credit either.
Are you dreaming about homeownership but have been afraid you don't have enough down payment or your credit isn't good enough? Give us a call or email today! As experienced local Realtors, we can refer you to a local lender that can help you get a loan that fits your needs. We even have lenders that will help you get your credit score up if needed as well.
If you are looking to buy or sell a home in the Anderson or Greenville SC real estate areas, visit our website at www.SheilaNewtonTeam.com for tons of great information.
Sheila Newton Team
Berkshire Hathaway HomeServices -
C. Dan Joyner, Realtors