Academy Mortgage Debunks Down Payment Myths

Down payment myths prevent many people from even considering buying a home, when in fact they could be enjoying home ownership right now!

"Aspiring first time buyers thinks it takes twice as much to buy a home than it really does". - Jonathan Smoke realtor.com's chief economist

FOR EXAMPLE

39% of non-owners say they believe they need more than 20% for a down payment.. NOPE
26% believe they need to put down 15-20%.. NO WAY
22% say they need a down payment of 10-14% to buy.. NOT TRUE

Here are the down payment facts that show making a down payment may be easier than you think!

6% among first-time home buyers, the average down payment in 2016 was 6%
8% for borrowers younger than 35, the average down payment was 8%.
3% Fannie Mae and Freddie Mac have mortgage products eligible home buyers with as little as 3% down

Down payment programs are available for 0-5% if you qualify

VA and USDA loan programs have 0% down payments for eligible borrowers
State housing loan programs have low down payments for eligible borrowers
Home Ready and Home Possible loan programs provide for down payments as low as 3% for low-to-moderate income borrowers and those in certain undeserved areas
FHA loans start at 3 1/2% down and conventional loans start at 5% down