Many would-be homebuyers believe they need to put 20% down on a home purchase. Actually, the Realtors Confidence Index from the National Association of Realtors says that 61% of first-time buyers put less than 6% down in 2017. In fact, in March, 71% of first-time buyers and 54% of all buyers put less than 20% down.
Ralph McLaughlin, Chief Economist and Founder of Veritas Urbis Economics, recently explained on why demand remains strong,
“The fact that we now have four consecutive quarters where owner households increased while renters households fell is a strong sign households are making the switch from renting to buying.
Households under 35 – which represent the largest potential pool of new homeowners in the U.S. – have shown some of the largest gains. While they only make up a third of all homebuyers, the steady uptick in their homeownership rate over the past year suggests their enormous purchasing power may be finally coming to [the] housing market.”
With rents continuing to rise, it’s no surprise to see first-time buyers take advantage of low-down-payment mortgage options to finally buy a place of their own.
If you are unsure of whether or not you qualify for a low-down payment mortgage, give us a call and we’ll create a plan to set you on your path to homeownership!