A recent survey by Zelman & Associates revealed that 38% of those between the ages of 25-29 years old and 42% of those between the ages of 30-34 years old believe that a minimum of 15% is required as a down payment to purchase a home. A recent questionnaire administered by Freddie Mac showed that over 50% of all respondents thought 20% was required as a down payment.
In actually, a purchaser may be able to put down far less. Freddie Mac, in a recent blog post addressing the issue, confirmed that there is misinformation regarding the amount necessary when determining the down payment for a home purchase: “Did you know 40 percent of today's homebuyers using mortgage financing are making down payments that are less than 10 percent? And how about this: since 2010, the number of people putting down less than 10 percent for conventional loans has grown three fold. So, not only are low down payment options real, they represent a significant portion of today's purchases.
”In a separate Executive Perspectives, Christina Boyle, Freddie Mac’s VP and Head of Single-Family Sales & Relationship Management explained further:
A person “can get a conforming, conventional mortgage with a down payment of as little as 5 percent (sometimes with as little as 3 percent coming out of their own pockets)”.
Qualified borrowers can further reduce the down payment coming out of their own pockets to 3 percent by lining up gifts from family or grants or loans from non-profits or public agencies.
Ms. Boyle goes on to explain:
“Letting more consumers know how down payments are determined could bring more qualified borrowers off the sidelines. Depending on their credit history and other factors, many borrowers can expect to make a down payment of about 5 or 10 percent.”
If you are saving for either your first home or that perfect move-up dream house, make sure you know all your options. You may be pleasantly surprised.
Ion Real Estate is a hand-picked team of highly respectable experienced Realtors coming together to work with you. Please contact us anytime with any questions. We look forward to serving your Colorado real estate needs. Our experience and dedicated professionalism ensures our clients have exceptional representation every step of the way. At a time where bigger isn't always better, Ion Real Estate has chosen to remain a smaller, highly focused team in order to provide a level of personal service, attention and consideration to our clients that you simply won't find elsewhere. Our decades of experience in the unique world of Denver real estate positions us advantageously to handle all of your real estate needs
From: Denver The Mile High CityTOURIST INFORMATION DESK AT DENVER UN
"We first met Marc Blitstein online when we were exploring the possibility of relocating from Central Florida to Denver, CO. From the moment we made contact we found him to be friendly, professional and knowledgeable about the Denver real estate market. He was able to tell us about various areas and he even visited property we were interested in on our behalf. Marc returned emails, phone calls, answered all of our questions, inquires and provided assistance with our questions about Denver’s legal requirements. After we had chosen a property, he was extremely thorough and careful to explain all of the ins and outs of our purchase offer, how the electronic documents and filings would be handled, the process of a home inspection, and other miscellaneous details that are involved in buying real estate long distance. He had several very helpful suggestions for us as we worked our way through the process. Marc went above and beyond our expectations. We whole heartedly recommend Marc as a real estate agent for any relocation to Denver or its metro area."