How Much Is A Down Payment On a House?
When I talk to potential buyers I am always surprised that they think that a down payment on a house is 10%, 20% or even 30%. Investors or foreign nationals seeking to buy real estate may be required to be down a large down payment. However, it is not true for the great majority of people that want to become homeowners.
As a result many families that could own homes continue to rent. Convergys Analytics did a study and they reported that 49% of renters thought they needed at least 20% toward a down payment on a home.
Median Down Payment In 2018 Was 5%
In 2018 the median down payment was 5%. That means that those that believe they need 20% to buy a house may already be qualified. Based on recent studies as many 33% of millennials already qualify to buy a home.
And waiting is costing them! Take a look at the graphic below to see how much :
Buy A House With As Little As 3.5% Down
There are many mortgage programs out there for all sorts of buyers. Some programs have down payments as low as 3.5%. Qualifying for one of these low down payment programs depends on your income, debt and credit score. But unless you get pre-qualified you won’t know. So if you are thinking about homeownership, take the first step and get pre-qualified!
If you are wondering if you qualify for a mortgage, wonder no longer! There is no reason to wonder. The benefits of owning are home are many, so take the time to find out where you stand.
Go to your bank, or credit union or contact a mortgage broker to see if you qualify. If you do, then you are one step closer to homeownership. If you don’t you will know the steps you need to take in order to get closer to owning your own home.
Next Step : Looking for Houses
Once you have pre-qualified you can start looking for houses. It is important that you take the time to choose a great real estate agent for this part of the process. The person you choose to help you will make all the difference in your experience. So choose well and happy house hunting!