Many renters are considering purchasing their own homes for a number of reasons; one of them is the fact rent is getting higher all the time. If you’re one of the many who think you must have 20% or more as a down payment the truth is, you don’t! Our Dallas real estate professionals hope to enlighten you with the information below. You may already be prepared to buy!
Depending on the price of a home, 20% can seem like a boatload of money. On a $100,000 home, you would need to save up $20,000. The misconception that you must have 20% is what’s keeping many people from buying their own homes right now. The good news is that while you may not know it, there are low down payment programs and other options available today. In fact, last year the average down payment on approved home loans was 5% – yes, you read that right!
Freddie Mac, Down Payment Resource and the Urban Institute partnered in a study, “Barriers to Accessing Homeownership,” which found that nearly a third of homeowners and almost 40% of non-homeowners thought more than 20% would be necessary for a down payment. Another report revealed that almost half of renters thought it would take at least 20% down to buy a home.
From FHA and VA loans to low down payment lenders including Quicken Loans, Bank of America and others, you may already have more than you need for a down payment on a home. At Team Nelson our Dallas Realtors want to help you make your dream a reality. Give us a call today!