John Hays, Broker/Realtor®
Bainbridge Island, Poulsbo, Silverdale,
Bremerton, Kingston, Port Orchard, Gig Harbor, University Place, North Tacoma
Call or text 206-419-5001
johnhays@cbbain.com
Read my reviews
Certified NFCU and Realogy Military Rewards Broker
The largest obstacle renters face when planning to buy a home is saving for
a down payment. This challenge is amplified by rising rents, which has eaten
into the amount of money renters have leftover for savings each month after
paying expenses.
In combination with higher rents, survey after survey has shown 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 a recent 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.
Convergys Analytics has found that 49% of renters believe they need at least a 20% down payment. 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!
There are over 45 million millennials (33%) who are mortgage ready right now, meaning their income, debt, and credit scores would all allow them to qualify for a mortgage today!
Bottom Line
If your five-year plan includes buying a home, meet with a local real estate professional who can help you determine what it will take to make that plan a reality. You may be closer to your dream than you realize!