The Myth of the Mortgage Down Payment
Did you know that the median down payment for first-time buyers has been 6% for three straight years?
If you answered NO to this question, you are likely not alone. According to the National Association of REALTORS®, Aspiring Home Buyer Profile, 87% of non-homeowners indicated that a mortgage down payment of 10% or more was necessary.
The Aspiring Home Buyer Profile also finds that eight out of ten non-owners indicated that owning a home is part of their American Dream. Yet, the confusion about down payment requirements is keeping aspiring home buyers from breaking into the real estate market.
Being unable to afford to buy was the number one reason non-owners cite as to why they don't own. Unrealistic expectations about down payments have kept credit worthy borrowers with manageable levels of debt from exploring the prospects of buying a home. Every prospective buyer is different, but consumers should talk to lenders about their qualifications before throwing in the towel on their homeownership dreams.
Those interested in buying their first home in 2017 should gather their financial paperwork, sit down with a lender to discuss their qualifications, and talk to family and friends for recommendations about a REALTOR® who can help them get started on their home search.
2017-Q1 Oregon REALTORS® Magazine