The National Association of Realtors’ states – 61% of first-time homebuyers purchased their homes with down payments lower than 6% from October 2016 through November 2017.
Consumers looking to purchase a home believe that a 20% down payment is required to buy and have disqualified themselves before even trying. The average down payment for all buyers in 2017 was just 10% and that percentage drops to 6% for first-time home buyers.
Looking into 2018, rent is predicted to continue rising. More widespread rent growth could mean home buying demands stay high. Renters who can afford to, move away from the unpredictability of rising rents toward the possibility and stability of a monthly mortgage payment instead.
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 who is not sure if you would qualify for a low-down payment mortgage, consult a real estate professional who can set you on the right path to homeownership!