The largest obstacle renters face when planning to buy a home? Saving for a down payment. Rising rents amplify this challenge by eating into the amount of money renters have leftover for savings each month after paying expenses.
In combination with higher rents, survey after survey shows that non-homeowners (renters and those living rent-free with family or friends) believe they need to save upwards of 20% for their down payment!
According to the “Barriers to Accessing Homeownership” study commissioned in partnership between the Urban Institute, Down Payment Resource, and Freddie Mac, 39% of non-homeowners and 30% of those who already own a home believe they need more than a 20% down payment.
The percentage of those who are aware of low down payment programs (those under 5%) is surprisingly low at 12% for non-homeowners and 13% for homeowners.
In a recent Convergys Analytics report, they found that 49% of renters believe they need at least a 20% down payment.
The good news? The median down payment on loans approved in 2018 was only 5%! Those waiting until they have over 20% may already have enough saved to buy now!
Over 45 million millennials (33%) are mortgage-ready right now, meaning their income, debt, and credit scores would all allow them to qualify for a mortgage today!
If your future plans include buying a home, call Team Nest Builder’s Lynn Garafola at 973-222-3777 to determine what it will take to make that plan a reality. You may be closer to your dream than you realize!
Want more insider scoop on buying a home? It’s your last chance to RSVP for our FREE Informational Home Buyer/Seller Insider Sessions taking place this Saturday, February 9th at Train Creative in Sparta. Click HERE for more information!
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