One More Time You Do Not Need 20 Down To Buy A Home

Dated: February 5 2019

Views: 70

One More Time... You Do Not Need 20% Down to Buy a Home | MyKCM

The largest obstacle renters face when planning to buy a home is saving for a down payment. This challenge is amplified by rising rents, which has eaten into the amount of money renters have leftover for savings each month after paying expenses.

In combination with higher rents, survey after survey has shown that non-homeowners (renters and those living rent-free with family or friends) believe they need to save upwards of 20% for their down payment!

According to the “Barriers to Accessing Home-ownership” study commissioned in partnership between the Urban Institute, Down Payment Resource, and Freddie Mac, 39% of non-homeowners and 30% of those who already own a home believe they need more than a 20% down payment.

The percentage of those who are aware of low down payment programs (those under 5%) is surprisingly low at 12% for non-homeowners and 13% for homeowners.

In a recent Convergys Analytics report, they found that 49% of renters believe they need at least a 20% down payment.

The median down payment on loans approved in 2018 was only 5%! Those waiting until they have over 20% may already have enough saved to buy now!

There are over 45 million millennials (33%) who are mortgage ready right now, meaning their income, debt, and credit scores would all allow them to qualify for a mortgage today!

Bottom Line

If your five-year plan includes buying a home, let’s get together to determine what it will take to make that plan a reality. You may be closer to your dream than you realize! Contact Tricia Glover and The Glover Team at 540-846-0185. Visit her website at http://tglover.liveinfredericksburgva.com.

Blog author image

Tricia Glover

As an agent who's an expert in this local area, I bring a wealth of knowledge and expertise about buying and selling real estate in the Northern Virginia Area. It's not the same everywhere, so you ne....

Latest Blog Posts

5 Really Affordable Yet Impactful Decorating Ideas

We all need a little change every now and then. Here is a little inspiration for sprucing up your home! https://www.pineandprospecthome.com/5-really-affordable-yet-impactful-decorating/#:~:

Read More

How To Compete With Cash Offers When Buying A House

Focusing on the seller's motivations and needs can help when you’re competing with cash offers. Let me know how I can help you navigate the process. nerdwallet.com/article/mortgages/compete

Read More

Housing Forecast

Robin Cantrell, Realtor The Glover Team Inc.United Real Estate Premier, 540-845-7651 cell#540-374-1111 office#992 Bragg Rd., Suite A, Fredericksburg VA 22407Licensed in the Commonwealth of

Read More

What Is A Property Title Search How This Important Step Can Make Or Break Your Closing

While a title search may not be as exciting as scrolling through online listings or dreaming of moving in, it’s a crucial step in a real estate transaction. bankrate.com/mortgages/property

Read More