According to one survey, more than 2,000 prospective homebuyers in the US are concerned about affording a down payment.
In fact, roughly 80% of respondents believe they will not be able to save enough money for a down payment, while 27% of people who have never purchased a home cite down payments as the main roadblock.
Additionally, down payments were cited as one of many roadblocks by 49% of respondents.
The report also highlighted widespread misconceptions about how much a buyer should put down on a property. In other words, one-third of respondents and 41% of those who have never bought a house think they must put down 20% to purchase a home.
However, according to the National Association of Realtors’s data, 44% of homebuyers put down below 20% of the purchase price. For example, if you have a credit score of 580, you can get an FHA loan with a minimum down payment of 3.5%.
Another worry for people who are thinking about purchasing a house is private mortgage insurance. Namely, 60% of Americans are unfamiliar with the procedure for eliminating it. This is most likely due to the fact that each lender has its own set of rules.
And finally, the data show that most first-time buyers have high objectives. For example, 42% plan to put down a minimum of 20%, although they have yet to start putting money away for a down payment. More precisely, a mere 19% are currently saving their money for a down payment.