The biggest misconception about mortgages = the down payment. Are you surprised? We’re not – we come across this misconception all of the time. Recent research indicates several interesting revelations that we would like to share with you to help you understand why you DON’T always need a 15% down payment.
According to Housing Wire, “It’s not that Millennial’s and other potential homebuyers aren’t qualified in terms of their credit scores or in how much they have saved for their down payment. It’s that they think they’re not qualified, or they think they don’t have a big enough down payment. “
To further the misconception case, you will see in the graph below that a huge 42% of 30-34 year olds believe they need a 15% down payment to purchase a home.
Here are some more interesting facts for you from Freddie Mac:
– A “person can get a conforming, conventional mortgage with a down payment of as little as 5 percent (sometimes with as little as 3 percent coming out of their own pockets).”
– More than one in five borrowers who took out conforming, conventional mortgages in 2014 put down 10 percent or less.
Moral of the story, you may not need a big down payment to buy your dream home. Don’t assume you can’t afford the property, simply ask a mortgage broker first! Hilton Head Real Estate Partners is happy to answer any general questions you may have about obtaining a mortgage, and once you have been approved – helping you find the perfect home!
Statistic and quote source: keepingcurrentmatters.com