There is increasing difficulty for first-time home buyers to save for their down payment as indicated in the graph. Several factors that contribute to this trend include rising rents, rising home prices, student loan debt and flat wages.
Some would-be buyers feel they cannot buy a home today but a large part of those decisions may be based on inaccurate assumptions.
Nine out of ten non-owners believe they need ten percent or more for a down payment. The typical down payment for first-time buyers is six percent. VA has 100% loan programs as well as USDA for certain qualifying areas and buyers. FHA is known for 3.5% down payments. And FNMA and Freddie Mac have down payments as low as 3% and 5%.
There are gift provisions available for buyers who have an “angel” who would like to help them with their down payment.
There are ways to borrow against a person’s qualified retirement program for a down payment. It isn’t necessarily limited to the buyer but could include a relative. Interestingly, a son or daughter can borrow against their retirement to benefit their parents.
In some respects, having good credit and sufficient income is more important than the down payment. Don’t rely on “common knowledge.” Get expert advice and counsel to see if there is a way to advance your dream of owning a home.
Community member for 29 years and a avid sports enthusiast, Duane has been working in the real estate industry for the past decade helping buyers and seller with the complexities and logistics of the relocation process. I serve as a volunteer coach for several local schools in Boulder & Lafayette. My #1 goal is to provide the best service I can to current, past and future clients as we strive towards building a 100% referral business.View all posts by DuaneCaraballo
Author:Duane Caraballo Phone: 720-371-8629 Dated: November 20th 2017 Views: 291 About Duane: ...
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17 years of diverse residential sales experience from corporate relocation to millennial, high tech, socially-driven entrepreneurial clientele. Lifestyle architect and matchmaker for your dream home & cultural experience here in the Boulder area. Enamorate yourself with fine-food establishments, friends, arts, fun & the vibrant downtown energy living in Boulder has to offer along with a home that reflects your image, style and needs.
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"House hunting on your own is never a good idea. In the Louisville/ Lafayette area it is not an option! We looked for months on our own only to find all the homes we were interested in were already under contract, sold or in over market bidding wars. Luckily Duane Caraballo reached out to us, and stood out from the rest. His casual, calm approach was just what we needed. Duane was understanding and patient with us and our small children through many, many walkthroughs and open houses. The convenience of his office being right in Louisville and his knowledge of the area was a bonus. It took about 4 months to find our home but once we did Duane quickly submitted our offer and stayed in constant communication with us through closing. We are very pleased with our house, the neighborhood and our final closing cost. The process of searching for and purchasing a home is stressful in itself and I can honestly say our realtor never added to this. He was great from the beginning to the end! We highly recommend Duane and would call him if needed. Although, I really hope we don't have to move anytime soon."