Login | Sign Up |

MENU
  • Property Search
  • Buyers
    • Property Search
    • Featured Homes
    • Dream Home Concierge
    • Mortgage Rates
    • Mortgage Calculator
    • Get Prequalified
  • Sellers
    • Home Values
    • Our Sold Listings
    • How We Market Your Property
  • Neighborhoods
    • Neighborhoods
    • Community Reports
    • San Diego County Zip Code Map
    • Community Planning Profiles
    • Zoning Information
  • Blog
  • About Me
    • Run with Me
  • Contact
  • Property Search
  • Buyers
    • Property Search
    • Featured Homes
    • Dream Home Concierge
    • Mortgage Rates
    • Mortgage Calculator
    • Get Prequalified
  • Sellers
    • Home Values
    • Our Sold Listings
    • How We Market Your Property
  • Neighborhoods
    • Neighborhoods
    • Community Reports
    • San Diego County Zip Code Map
    • Community Planning Profiles
    • Zoning Information
  • Blog
  • About Me
    • Run with Me
  • Contact

How Much Down Payment Do You Need for a House?

How Much Down Payment Do You Need for a House?

July 31st, 2018

How Much Down Payment Do You Need for a House?

You DO NOT Need 20% Down to Buy Your Home NOW!

The Aspiring Home Buyers Profile from the National Association of Realtors (NAR) found that the American public is still somewhat confused about what is required to qualify for a home mortgage loan in today’s housing market. The results of the survey show that the main reason why non-homeowners do not own their own homes is because they believe that they cannot afford them.

This brings us to two major misconceptions that we want to address today.

1. Down Payment

A recent survey by Laurel Road, the National Online Lender and FDIC-Insured Bank, revealed that consumers overestimate the down payment funds needed to qualify for a home loan.

According to the survey, 53% of Americans who plan to buy or have already bought a home admit to their concerns about their ability to afford a home in the current market. In addition, 46% are currently unfamiliar with alternative down payment options, and 46% of millennials do not feel confident that they could currently afford a 20% down payment.

What these people don’t realize, however, is that there are many loans written with down payments of 3% or less.

Many renters may actually be able to enter the housing market sooner than they ever imagined with new programs that have emerged allowing less cash out of pocket.

2. FICO®Scores

An Ipsos survey revealed that 62% of respondents believe they need excellent credit to buy a home, with 43% thinking a “good credit score” is over 780. In actuality, the average FICO® scores for approved conventional and FHA mortgages are much lower.

The average conventional loan closed in May had a credit score of 753, while FHA mortgages closed with an average score of 676. The average across all loans closed in May was 724. The chart below shows the distribution of FICO® Scores for all loans approved in May.

You DO NOT Need 20% Down to Buy Your Home NOW! | Simplifying The Market

Bottom Line

If you are a prospective buyer who is ‘ready’ and ‘willing’ to act now, but you are not sure if you are ‘able’ to, let’s sit down to help you understand your true options today.

Share on:

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Previous Post:
The Cost of Coastal Living – Home Prices in San Diego Beach Towns
Next Post:
Things to Do in San Diego – August 2018
Sign up for my Calendar of Events and Market Update
Categories
  • Buying Myths
  • Calendar of Events
  • Community Reports
  • Down Payments
  • First Time Home Buyers
  • For Buyers
  • For Sellers
  • Infographics
  • Interest Rates
  • Move-Up Buyers
  • Pricing
  • Real Estate News
  • Rent vs Buy
  • Run with Me
  • San Diego Market Updates
  • Selling Myths
  • Social Media Posts
  • Uncategorized
Recent Posts
  • San Diego Real Estate Market Update – December 2020
  • Average Homeowner Gained $17K Equity in Past 12 Months
  • San Diego Real Estate Market Update – November 2020
  • San Diego Voter: Housing Issues in Upcoming Election
  • Multiple Buyer Needs

Contact Me:

Karen DeGasperis

REALTOR, DRE #01987398
2020 SDAR Board of Directors
2020 SDAR Government Affairs Committee
2020 SDAR Grievance Committee
2019 SDAR Vice-Chair Housing Opportunity Committee
2020 President, Organization of Networking Entrepreneurs (ONE)

Phone: 858-324-4045
Email: Karen@HomeOptionsSD.com
Website: Http://HomeOptionsSD.com

© 2021 Karen DeGasperis, 858-324-4045, CA DRE 01987398, DeGasperis & Associates Real Estate, 7875 Highlands Village Pl Suite B102-425, CA DRE 01229090
Websites for REALTORS