There is a myth in the world of homebuyers that you have to have 15% to 20% down payments to purchase a house. In 2017, the National Association of Realtors discovered that 40% of respondents felt that they would be required to pay at least a 15% down payment.
In truth, the median down payment is more like 6% for first time homebuyers and 14% for repeat homebuyers.
This idea of massive down payment can be a deterrent to first-time homebuyers even considering they can buy a house. If they think that they need to save up $30,000 to $60,000 to even begin looking at homes, they will simply not even start. Low income folks, as well as young women, perceive homeownership as being beyond their reach.
Many first time buyer loans only require 3% with an additional 3% in closing cost, etc. On a $200,000 house, that's $12,000 versus $40,000 and more.
People believe in home ownership, but they see the price of entry as too high. Most people feel that they have to save up for decades to be able to afford the down payment. This causes many young people, especially women, to simply not even consider the idea until they're in their thirties or forties.
The truth is that buying a home, especially for first-time buyers, is much easier than one might think. Working with a mortgage broker can help people who are unsure to find the right loan and better understand the affordable home-buying options that exist.