20 Percent or Bust? Not So Fast
By D’Ann Harper | Sep 13, 2019
In the race to home ownership, many people speed past the mortgage broker and zero in on what home they think they can afford based on a 20 percent down payment.
But did you know that a large percentage of people who are buying a home this year do not put 20% down?
It feels like one of the biggest secrets in real estate, but at Coldwell Banker D’Ann Harper, Realtors® we love shouting this news from the rooftops.
Several factors over the last 10 years have dramatically changed how people finance their home: low interest rates, greater availability of mortgage products and a higher rate of mortgage loan approvals.
That’s great news if you are in the market to buy your first home. First-time homebuyers account for about a third of all homebuyers according to the National Association of Realtors.
Nearly three quarters of first-time homeowners and half of existing homeowners did not put 20 percent down. In fact, the average down payment, according to the National Association of Realtors, was just 6%.
Many of them took advantage of low or no money down mortgage products like these.
- FHA Loan (3.5% down payment)
- HomeReadyTM Mortgage (3% down payment)
- Conventional 97 (3% down payment)
- USDA (No down payment)
- VA (No down payment)
To learn more about how a low or no down payment mortgage can affect your purchasing power, contact one of our trusted mortgage advisors.
Source consulted but not included:https://themortgagereports.com/17670/7-mortgage-loans-low-no-zero-downpayment-buyers-2015
Coldwell Banker D’Ann Harper, REALTORS® can be reached at (210) 483-7581 or firstname.lastname@example.org and has been an affiliate of the Coldwell Banker franchise system for over 30 years.
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