If I were an agent, I would be screaming this from the rooftops to attract buyers: “You don’t need 20% down to buy a house!”
Lenders might want to scream this too. Oh wait…I am right now. 😊
SIDEBAR: I am posting past blogs for review from time to time, and this one is particularly educational: Why Perfect Credit Scores Don’t Matter.
A recent Fannie Mae survey indicated that:
- Only 10% of Americans know they can buy a home with 5% down or less.
- Only 1 in 7 of “active home shoppers” know they can put down 5% or less.
- Almost half of Americans believe they need at least 15% to 20% down.
In light of this, here is a quick review of some prominent down payment options.
Down Payment Assistance Options
There are also dozens of down payment assistance options in every state – too many to discuss in this blog.
Most of them have income limits and first-time homebuyer restrictions, but they are excellent options for buyers who are very tight on cash.
To learn more about the down payment assistance options in your state, please reach out to us.
Final Point – How Many Buyers Are On The Sidelines For No Reason?
Those of us in both the real estate and mortgage industries are so aware of these down payment options that we assume everyone is else is too.
Fannie Mae’s survey is another reminder that most potential buyers have no clue.
That makes me wonder how many potential buyers are needlessly on the sidelines simply because they don’t know how small of a down payment they actually need.
