byThe KCM CrewonNovember 9, 2016inDown Payments,First Time Home Buyers,For Buyers,Move-Up Buyers
The availability of mortgage credit is not at the same level that it was during the boom in housing (2005), and that’s good news. However, the constant headlines which talk about“tight credit”are causing some potential home buyers to doubt their ability to purchase. We want to rectify the misconception of what is required for a down payment in order to purchase a home in today’s market.
Freddie Macrecently discussedthe confusion many first-time homebuyers have about the down payment they need in order to buy:
“Did you know that the average down payment among first–time homebuyers is 6% and it's 13–14% for repeat buyers…It's possible to put down even less.
Many potential homebuyers think that only the FHA helps make mortgage loans with low down payments. Not true.
Freddie Mac's Home Possible mortgage products let qualified homebuyers put down as little as 3%.”
Brenda Garcia Lemus ofJohn Burns Real Estate Consultingreportsthat this is also the case with newly constructed homes:
“Our home-builder clients sell hundreds of homes every weekend to buyers with 5% down payments and below average credit scores. Yet, many middle-income households with average credit and access to a 5% down payment assume they cannot become homeowners because of the ‘tight credit’ headlines.”
Before you ‘disqualify’ yourself, check with a professional in your market to find out what is possible in mortgaging today.
Author:Salvatore Defrisco Phone: 561-644-0052 Dated: November 9th 2016 Views: 107 About Salvatore: ...
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