According to a recent survey
conducted by Genworth Financial Inc. at the Annual Mortgage
Bankers’ Association Secondary Market Conference, 69% of potential
first-time buyers still believe a 20% down payment is necessary to buy in
today’s market. Nearly 40% of mortgage industry professionals surveyed believe
that a lack of knowledge about the home-buying process is keeping potential
buyers on the sidelines. Saving for a down payment is often cited as a huge
barrier for first-time homebuyers to make the leap into homeownership. If
homeowners believe that they need a 20% down payment to enter the market, they
also believe that they will have to wait years (in some markets) to come up
with the necessary funds to buy their dream homes. The greatest source of
confusion cited in the survey results centered around down payments. The
results are broken down in the chart below: Rohit Gupta, CEO
of Genworth Mortgage Insurance had this to say,
"While
first-time homebuyers continue to drive the purchase market, we believe many
are staying on the sidelines due to the misconception that a 20 percent down
payment is required to secure a mortgage. There are various low down payment
options available today that allow prospective homebuyers to reach their dreams
of homeownership sooner. It is crucial that, as an industry, we proactively
educate eligible borrowers about solutions that will enable them to buy a home
when they're ready."
Bottom Line
Don’t let a lack of understanding of the home-buying
process keep you and your family out of the housing market. Meet with a local real
estate professional who can show you your options today!
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