• CMG MORTGAGE, INC. NMLS #1820

Over Half of All Home Buyers Put Down Less Than 20%

  • July 27, 2017

For most first-time home buyers, the biggest challenge when buying a home is saving for the down payment.  However, the 20% down payment is not as rigid of a requirement as it has been in the past.  Low down payment programs, especially those targeting first-time home buyers, are growing in popularity. 

The National Association of Realtors (NAR) reports that over 70% of noncash, first-time home buyers did not put down 20% and over 54% of total buyers put down less than 20% in the past five years. Typically, 60% of all first-time home buyers put down approximately 6% or less. 

Many potential first-time home buyers are not aware of low down payment programs, and continue to save for the traditional 20% down payment.  Government-sponsored loans like FHA loans have lower down payment requirements, and VA loans do not require a down payment at all.  Additionally, not all conventional financing requires a 20% down payment.

20% down payments do have some advantages including lower monthly mortgage payments and no mortgage insurance.  Buyers who put down 20% or more may also qualify for a better mortgage interest rate.  The 20% down payment is the best option for some borrowers but not all.   Home buyers should consult a mortgage professional to determine what type of financing and down payment amount

 

Source: MarketWatch

Cindy MacDonell
Senior Loan Officer
NMLS # 316198
Branch NMLS # 1270689

Cindy MacDonell

PHONE: (707) 781-8185
cmacdonell@cmgfi.com

APPLY NOW
© 2016 CMG Financial, All Rights Reserved. CMG Financial is a registered trade name of CMG Mortgage, Inc., NMLS ID #1820 in most, but not all states. CMG Mortgage, Inc. is an equal opportunity lender, licensed by the Department of Business Oversight under the California Residential Mortgage Lending Act No. 4150025; Loans made or arranged pursuant to a California Finance Lenders Law license No. 6053674. Offer of credit is subject to credit approval. For State specific licensing, visit www.cmgfi.com/licensing.php. To verify our state licenses, please visit www.nmlsconsumeraccess.com. This site is not intended to serve as a business solicitation for residents in the state of Massachusetts and New York.