Far too many homebuyers still believe they need a 20% down payment to purchase a home. Unfortunately, this is one of the biggest misconceptions in the market and is a perceived barrier to millions of aspiring homeowners.
In fact, the average down payment for first-time homebuyers is 5%, according to the National Association of Realtors®.
Sure, you'll have to pay Primary Mortgage Insurance (PMI) for a loan with less than 20% down, but this can be a nominal price to pay for being able to secure a home loan at today's mortgage rates. Buying now can also help you start building home equity.
Again, paying PMI can be a nominal price to pay for being able to secure a home loan at today's mortgage rates and start building home equity now.
Our mortgage is one option that can help qualified first-time homebuyers buy a home with as little as 3% down. Your down payment funds may come from a variety of sources:
A gift from a relative
Our HFA down payment assistance programs
Once you reach 20% equity in your home, you'll be eligible to cancel your PMI expense, potentially saving you thousands over the life of the loan
If your plans for 2019 include purchasing a home, visit us at hfamiami.com/homebuyers to learn about our first-time home buyer's mortgage, low interest rates and down payment assistance programs.
Note, information in this post was derived from freddiemac.com.