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

Dated: 03/05/2019

Views: 18

One More Time… You Do Not Need 20% Down to Buy a Home

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 Homeownership” 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!

Blog author image

Shalaye Camillo

At the forefront of Vital Source Realty is its founder and CEO, Shalaye Camillo. Her passion for real estate, education and entrepreneurship is the backbone of the company. While her days are filled w....

Want to Advertise on this Site?

Latest Blog Posts

Some Quick Links That Can Help You Find A Great Deal In Boston

Down below are some 'Quick Links' that shows you a specific list of Propertunities in Boston.If you're looking for a great deal on a home or investment property in or around Metro Boston area be

Read More

How One Dorchester Nonprofit Is Helping First Time Homebuyers Get A Mortgage

The neighborhood of Savin Hill in Dorchester. David L Ryan / Globe Staff PhotoMegan Turchiwww.Boston.com Staff Follow @meganturchiApril 22, 2016 10:05 amView Article PageWhen Shalaye Camillo

Read More

36 Msgr Patrick Lydon Way Pet Friendly Condo Dorchester Ashmont

#02124 #ashmontstation #peabodysquare36 Msgr. Patrick J Lydon Way, Dorchester, MA 02124This unique, pet friendly condo home boasts 1155 sq. Ft., 2 large bedrooms, a huge fireplace living room,

Read More

7 Things To Avoid After Applying For A Mortgage

7 Things To Avoid After Applying for a Mortgage!Congratulations! You’ve found your Boston home to buy and have applied for a mortgage! You are undoubtedly excited about the opportunity to

Read More