61% of Buyers put down less than 6%?!
Home buyers are often hesitant to put their toe in the home ownership water for reasons that may not even be real. Not having as much as you would like in the bank, maybe knowing you have a few credit issues, and things like that are all things any of us don’t want to face, but opportunities and options are available.
According to the Realtors Confidence Index from the National Association of Realtors, 61% of first-time home buyers purchased their homes with down payments below 6% in 2017.
Many potential home buyers believe that a 20% down payment is necessary to buy a home and have disqualified themselves without even trying, but in March, 71% of first-time buyers and 54% of all buyers put less than 20% down.
Ralph McLaughlin, Chief Economist and Founder of Veritas Urbis Economics, recently shed light on why buyer demand has remained strong,
“The fact that we now have four consecutive quarters where owner households increased while renters households fell is a strong sign households are making the switch from renting to buying.
Households under 35 – which represent the largest potential pool of new homeowners in the U.S. – have shown some of the largest gains. While they only make up a third of all home buyers, the steady uptick in their home ownership rate over the past year suggests their enormous purchasing power may be finally coming to [the] housing market.”
It’s no surprise that with rents rising, more and more first-time buyers are taking advantage of low-down-payment mortgage options to secure their monthly housing costs and finally attain their dream homes.
Next Steps:
If you are one of the many first-time buyers unsure of whether or not they would qualify for a low-down payment mortgage, let’s get together and set you on your path to home ownership! Even with some challenges on credit, I have lender friends that can help you decide the best options for getting your score on track.
