First-Time Home Buyers (as well as All Buyers) Are Making Smaller Down Payments!
According to the National Association of REALTORS 2017 Profile of Home Buyers and Sellers, the median down payment for first-time buyers has dropped to 5%, down from 6% last year. In September, 60% of first-time home buyers put 6 percent or less down when purchasing a home. These numbers are much lower than most first-time home buyers think they are. In fact, NAR conducted a survey and they found that most consumers that did not currently own a home believe that they need a down payment of 10% or 20%.
That is not necessarily true. Some buyers can take advantage of even lower down payments, FHA has a low down payment option of 3.5% and there is a conventional loan program that only requires a 3% down payment. Some downpayment assistance programs still exist as well. And of course, VA financing with zero down is available to those that qualify. You don't have to be a first-time buyer, these downpayment amounts apply to buyers that have purchased a home before as well.
If you've been thinking about buying a home, talk to a mortgage professional about the different loan programs out there that could help you get into a home for a smaller down payment. Contact me at 623-252-9350 or cinda@wvhometeam.com if you'd like me to send you the name of a local lender and help you get a game plan together for owning a new home in 2018!! Or you can visit this website: https://www.homeownersfg.com/jeffobrasky
Like any mortgage decision, shop around and compare costs before deciding on a loan that works best for you.
