A report released by Down Payment Resource shows that 61% of first-time homebuyers purchased their homes with a down payment of 6% or less.
The trend continued among all buyers with a mortgage, as 73% made a down payment of less than 20%.
An article by Chase points to a new wave of millennial homebuyers:
“We teamed up with Google to help us better understand what customers are searching for and how the home buying landscape is evolving. We found that millennials and first-time homebuyers are making a big splash in the market, and affordability remains top of mind.”
Among millennials who purchased homes, David Norris, Loan Depot’s Head of Retail Lending, said:
“It’s clear from the survey results that Millennials have a lot of anxiety built up about the home buying process.
There is good news, however, as there’s more flexibility than most Millennials think regarding how to qualify for a loan and what’s needed for a down payment.”
Today’s market offers multiple options for financing and down payment programs
FHA has reduced their minimum down payment to 3.0% from 3.5%. USDA and VA offer 100% financing. HUD properties offer a $100 down payment FHA program in many states. It pays to speak with professional to find out all of your options.
If you are one of the many millennials who is debating a home purchase this, contact a local professional who can help you understand your options and set you on the path to preapproval. With interest rates still at historic lows there is no better time to buy. Contact us today! We will be happy to send you a list of multiple mortgage professionals that you can speak with and get all your questions answered.