One of the biggest misconceptions of home buying? The 20% down payment.
You Don’t Need A 20% Downpayment To Buy A Home. Here’s how to buy with a lot less down.
Buyers often overestimate the down payment funds needed to qualify for a home loan. “Most potential homebuyers are largely unaware that there are low-down payment and no-downpayment assistance programs available at the local, state, and federal levels to help eligible borrowers secure an affordable down payment.”
These numbers do not differ much between non-owners and homeowners. For example, “30% of homeowners and 39% of renters believe that you need more than 20 percent for a down payment.”
While many believe that they need at least 20% down to buy their dream homes, they do not realize that there are programs available which allow them to put down as little as 3%. Many renters may actually be able to enter the housing market sooner than they ever imagined with programs that have emerged allowing less cash out of pocket.