Can you actually buy a home with little down?
Buying with little money down.
Many people are under the assumption that in order to purchase real estate, you need to have a deposit of 20% of the purchase price. That has not been so for quite some time. As a matter of fact over the past 12 months, 1.5 million Americans have purchased a home with a down payment of less than 10%. This is a 7-year High and this category.
There are many mortgage programs that are offered, mostly by Freddie Mac or Fannie Mae which will allow you to purchase your dream home with as little as 3% down. FHA backed mortgages require as little as 3.5%.
The more important factor in purchasing a home is not the size of your down payment, rather than the credit history of the borrower. Also important is the fact that the borrower needs to meet the federal guidelines for income requirements.
But many first-time home buyers have the income, have the credit and are able to purchase a home because they don’t need to save up that large down payment. So if you don’t have the 20% yet? Don’t let that stop you from buying a home now.
And if you’re selling home, this opens up a whole new range of potential buyers for it.