First time homebuyer down payment can be less than 6%First time homebuyer down payment programs vary. Also, according to the National Association of Realtors’ latest Realtors Confidence Index, 61% of first time homebuyers purchased their homes with down payments below 6%. This statistic was taken from October 2016 through November 2017. Depending on the different types of financing and programs, first time homebuyers down payments can be as little as 3.5%.
Many potential homebuyers believe that a 20% down payment is necessary to buy a home which has disqualified themselves without even trying! The median down payment for all buyers in 2017 was just 10%. That percentage drops to 6% for first time homebuyer down payment.
Zillow Senior Economist Aaron Terrazas’ recent comments shed light on why buyer demand has remained strong,
“Looking into 2018, rent is expected to continue gaining. More widespread rent growth could mean home buying demands stay high, as renters who can afford it move away from the unpredictability of rising rents toward the relative stability of a monthly mortgage payment instead.”It’s no surprise that rents are rising. A First time homebuyer down payment program can take advantage of low down payment mortgage options and will secure their monthly housing costs. Because of first time homebuyer down payment programs, they can finally attain their dream home.