61% Of First-Time Buyers Put Down Less Than 6%
According to the Realtors Confidence Index from the National Association of Realtors, 61% of first-time home buyers purchased their homes with down payments below 6%.
Many potential home buyers believe that a 20% down payment is necessary in order to buy a home and many have disqualified themselves without even trying, but in October, 74% of first-time buyers and 52% of all buyers put less than 20% down.
Elizabeth Mendenhall, President of NAR, recently shed light on why buyer demand has remained strong,
"Despite first-time buyers struggling to achieve home ownership, Realtors® in most areas say demand is still the strongest at the entry-level segment of the market.
For prospective first-timers looking to begin their home search, competition will remain swift. That is why it’s important to be fully prepared with a pre-approval from a lender, and to begin conversations with a Realtor® early about what you’re looking for and where.”
It’s no surprise that with rents rising, more and more first-time buyers are taking advantage of low-down-payment mortgage options to secure their monthly housing costs and finally attain their dream homes.
If you are one of the many first-time buyers unsure of whether or not you would qualify for a
low-down-payment mortgage, let’s get together and set you on your path to home ownership!