Anyone who has saved for a down payment for a home knows it’s tough — especially for first-time homebuyers. In 2018, the National Association of Realtors (NAR) found that for 13 percent of first-time homebuyers, said the most difficult step in the homebuying process was saving for a down payment.
It’s a misconception that a 20-percent down payment is required for a home purchase when in reality, many home loan options exist that may be able to put consumers into a home for as little as three percent down. In fact, 77 percent of non-cash first-time homebuyers in 2018 purchased a property using a down payment of less than 20 percent. Buying a home may be within reach — RE/MAX and Motto Mortgage put together a list of the most popular loan options for first-time buyers.
“Renting felt like such a waste of money and didn’t help us build our own equity,” said Jasmine Lucero, 21, of Denver, Colorado. “I knew owning a home was in my future, but convincing my fiancé, who is the mathematical, practical one, was the hard part.”
Lucero’s fiancé, Chace Malone, didn’t think they had enough saved for a down payment. “He was having a hard time with the thought of buying a new home with our upcoming wedding – he said it was too much to take on, too complicated and would stress us out.”
Lucero, who works as an administrative assistant at a RE/MAX office, and Malone are not alone. In 2018, the National Association of Realtors (NAR) found that for 13 percent of first-time homebuyers, the most difficult step in the homebuying process was saving for a down payment.
But part of that difficulty may stem from not knowing what’s possible.
Some people have the misconception that a 20-percent down payment is required for a home purchase, when in reality, many home loan options exist that may be able to put consumers into a home for as little as 3 percent down. In fact, 77 percent of non-cash first-time homebuyers in 2018 purchased a property using a down payment of less than 20 percent.
“Mortgages are not one size fits all,” said Ward Morrison, President of Motto Franchising, LLC. “The right loan originator will understand your unique situation and work with you to find you the best option. Just like homeownership, the journey to a down payment looks different across the country based on local home prices, the types of loans you qualify for, competition and opportunities.”
Original Article from RE/MAX blog: https://www.remax.com/blog/how-cash-strapped-consumers-can-become-homeowners-and-build-equity/
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