62% of Buyers Are Wrong About Down Payment Needs
Many first time home buyers believe they need have 20% of the home's price to make a down payment. Get the facts.
News Flash: On average, the minimum down payment required for a conventional loan is 3%. And the minimum down payment for an FHA loan is 3.5%. Some special loan programs even allow for 0% down payments.
According to the Nerdwallet ‘2019 Home Buyer Report’ , many first-time buyers still believe they need a 20% down payment to buy a home in today’s market:
“More than 6 in 10 (62%) Americans believe you must put at least 20% down in order to purchase a home.” When potential home buyers think they need a 20% down payment to enter the market, they also tend to think they’ll have to wait several years (in some markets) to come up with the necessary funds to buy their dream homes. The report above continues to say, “The truth: 32% of current U.S. homeowners put 5% or less down on their home, according to census data.”
The lack of knowledge about the home buying process is unfortunately keeping many motivated buyers on the sidelines. Don’t let a lack of understanding keep you and your family out of the housing market. Visit us at hfamiami.com/homebuyers and contact one of our lenders to get the facts and get on track to make home ownership a reality.