There are a lot of misconceptions surrounding home loan down payments, many of which frighten prospective buyers out of purchasing their first homes. But not everything you hear about home purchase and ownership is fact.
Below are three facts about home loan down payments you should consider before declining the idea of home ownership. This may even convince you to take this all-important life step.
- Home purchases don’t require a 20% down payment. It’s a common misconception that all home purchases require a 20% down payment. Additionally, most people are under the incorrect impression that this is a required minimum. However, that’s just not the case. There are plenty of mortgage lending programs that allow you to put less than 10% down and this is a very popular alternative.
- Only 40% of homebuyers put at least 10% down. It’s true! The majority of homebuyers (60%) purchase their homes with a down payment of 10% or less.
- There are programs that allow you to put as little as 3% down. There are many federal programs available that allows a homebuyer to purchase properties with as little as 3% down.
So perhaps your dreams of home ownership are easier to reach than you thought! Talk with your lender and real estate professional to discover what down payment options are available to you, and get ready to move into your new home.