January 17th, 2019 11:20 AM by Jackie A. Graves, President
If rising home prices
have you down–in–the–dumps and concerned about affordability, think again. Low
down payment mortgage options — some requiring as little as 3% down — are
available for qualified borrowers and can offer you a path to homeownership.
Far too many
homebuyers still believe they need a 20% down payment to purchase a home.
Unfortunately, this is one of the biggest misconceptions in the market and is a
perceived barrier to millions of aspiring homeowners.
In fact, the average
down payment for first-time homebuyers is 5%, according to the National
Association of Realtors®. Sure, you'll have to pay Primary Mortgage
Insurance (PMI) for a loan with less than 20% down, but this
can be a nominal price to pay for being able to secure a home loan at today's
mortgage rates. Buying now can also help you start building
Paying PMI can be a
nominal price to pay for being able to secure a home loan at today's mortgage
rates and start building home equity now.
Making Home Possible
Freddie Mac's Home
Possible® mortgage is one option that can help qualified
first-time homebuyers buy a home with as little as 3% down. With this option:
Your down payment
funds can come from a variety of sources, including a gift from a relative,
employer-assistance programs, and down payment
If you are a
Do-It-Yourself-er, you can use your skills to help pay for your down payment
and closing costs.
Once you reach 20%
equity in your home, you'll be eligible to cancel your PMI expense, potentially
saving you thousands over the life of the loan.
Home Possible has made
homeownership a reality for more than 260,000 families and counting. Reach out
to your lender today to learn more about low down payment options that can help
you attain homeownership.
Visit My Home by
Freddie Mac® to learn all you need to know about the
homebuying process, from A to Z.
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