So, you think you need a 20% down payment to buy a home in 2019?
Not true. Not true. Not true.
The biggest roadblock renters face when deciding to buy a home is saving for the down payment. Which is a challenge with rising rent prices eating into the savings plan each month.
Along with the challenge of rising rent prices, surveys show that non-homeowners believe they need 20% or more for a down payment. Double whammy!
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.
And the percentage of potential home buyers aware of low (under 5%) down payment programs hovers around a low12% for non-homeowners and 13% for homeowners.
In a recent Convergys Analytics report, the figures show that 49% of all renters believe they need at least a 20% down payment.
But here’s the clincher. The median down payment on loans approved in 2018 was only 5%. Median means that half of all loans required less than 5% down payment and half required more than 5%.
That’s a game changer, right?
In other words, if you’re waiting until you can accumulate 20% of the price of the home for a loan, you may already have more than enough saved to buy that home NOW.
There are over 45 million millennials (33%) who are mortgage-ready right now, meaning their income, debt, and credit scores all qualify them for a mortgage today.
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, and we’re here to help you all the way.
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SkyBlue Portland: Your Local Family Real Estate Team