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New Report Shows That 61 Percent Of First Time Buyers Made A Down Payment Of 6 Percent Or Less
One of the biggest hurdles that potential buyers have to overcome on the road to homeownership is saving for a down payment. Traditionally, you needed a 20% down payment in order to secure a loan and purchase a property. For many people dreaming of buying property, this large up-front investment put home ownership out of their reach.
Times have changed. Depending on your creditworthiness, you might not need a 20% down payment to purchase a home. In fact, in some cases you don’t even need a 10% down payment. According to the National Association of Realtors’ Realtors Confidence® Index, 61% of first-time buyers in 2017 made a down payment of 6% or less.
Low-down-payment mortgage options, like FHA loans, are making the possibility of homeownership a reality for a new generation of potential homeowners who have the financial means to manage their mortgage payments but don’t have the ability to stash away 20% of the total cost before making a purchase.
If you’ve been putting off homeownership because you’re worried your savings account can’t support a hefty down payment, start talking to lenders. Even if you don’t have any money to put towards a down payment, the possibility of owning a home is within your reach.
GroupWatson has several awesome lenders they can refer you to in order to get your pre-approval squared away. We are your one stop shop when it comes to your real estate transaction and we welcome the opportunity to work with you and make your home buying process and smooth one!
Scott and Tammy Watson are the Owners and Team Leads for GroupWatson, Keller Williams. With 47 years of combined real estate experience, a "Client First Philosophy" is exemplified by providing excepti....