While 2017 may have been the best year for housing in a decade, findings from the fifth annual America at Home survey from NeighborWorks America indicate several perceived barriers to homeownership. The survey respondents, which consisted of 1,000 U.S. adults and 500 millennials, indicated that lack of down payment, credit concerns and student loan debt prevented many from achieving homeownership.
Additional findings from the survey include:
- The average millennial thinks the minimum required down payment is 21 percent.
- Seventy percent of adults feel they don't have enough money saved for a down payment.
- Seventy–four percent of adults and 84 percent of millennials perceive the homebuying process as complicated
The survey found that general confusion about down payment requirements was compounded by a lack of awareness about assistance programs. Approximately 73 percent of all consumers and 62 percent of millennials said they were not aware or are unsure about down payment assistance programs in their communities for middle–income homebuyers.
If you're in the market to buy a home, it's important to understand your down payment options and separate the facts from the myths. Did you know the average down payment among first–time homebuyers in 2016 was 6 percent and 14 percent for repeat buyers? You can even put down as little as 3 percent through mortgage options like the Freddie Mac Home Possible Advantage® mortgage.
And, while you'll have to pay private mortgage insurance for a conventional loan with a down payment of less than 20 percent, you'll still be able to take advantage of the 30–year fixed rate mortgage that can offer you security and peace of mind throughout the life of your loan. There are also hundreds of millions of dollars available for down payment assistance. A great place to start is right where you live. Many state, county, and city governments provide financial assistance for people in their communities who are well qualified and ready for homeownership.
Homebuying doesn't have to be complicated. Visit My Home for information, resources, and tools to help you gauge your options and understand what's involved in looking for, buying, and maintaining your own home.
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