Misconceptions Keep First Time Home Buyers Out of Market

MarketWatch | Since the recession, first-time home buyers, who’ve made up around 40 percent of all buyers, have been shrinking. In 2015, they made up just under 30 percent of the market share, according to the National Association of REALTORS®.

The culprit seems to be a lack of knowledge about low-down payment programs such as those available by the Federal Housing Administration.

Consumers believe on average that they need 16 percent for a down payment in order to qualify for a mortgage, but in reality, homes can be purchased with as little as a 3 percent down payment.

Rules enacted in 2015 that decreased the amount of mortgage insurance borrowers must pay on FHA loans and Fannie Mae and Freddie Mac lowering down payment minimums may have boosted first-time participation slightly, say housing analysts.

If you have any questions about purchasing a home, please contact me today. I’m able to help you find the right home and help you secure the right financing.

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s