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.
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