5 Percent Down Payment? You Bet.
Did you know 40 percent of today's homebuyers using mortgage financing are making down payments that are less than 10 percent? And how about this: since 2010, the number of people putting down less than 10 percent for conventional loans has grown three fold. So, not only are low down payment options real, they represent a significant portion of today's purchases.
Yet, many potential homebuyers believe they need a 20 percent down payment to realize their dream of homeownership. In a recent study performed by Zelman & Associates, more than half of the respondents said they simply don't have the funds for a down payment. What's more, 40 percent of all respondents thought they had to put down at least 15 percent, and 15 percent thought they needed more than 20 percent. No wonder they feel locked out of the market.
Now you know.
If you are a qualified borrower, but are having trouble saving for your down payment, check out the down payment assistance programs offered by your state and local governments.
Read other Did You Know? posts in our series to celebrate National Homeownership Month