5% Down Payment - You Bet!
Did you know that 40 percent of today's home buyers using mortgage financing are making down payments that are less than 10 percent?
And how about this: since 2010, the number of people putting down less than 10 percent for conventional loans has grown three-fold. So, not only are low down payment options real, they represent a significant portion of today's purchases.
Yet, many potential home buyers believe they need a 20 percent down payment to realize their dream of home-ownership. In a recent study performed by Zelman & Associates, more than half of the respondents said they simply don't have the funds for a down payment. What's more, 40 percent of all respondents thought they had to put down at least 15 percent, and 15 percent thought they needed more than 20 percent.
No wonder they feel locked out of the market.
Source: Freddie Mac
