It seems that misinformation is keeping renters from buying their first houses.
The data comes from two separate surveys of renters, conducted by mortgage software company Ellie Mae and Zillow, respectively. Tens of thousands of would-be buyers were consulted.
According to the surveys: Fewer than 11% of renters knew you could buy a house with no money down; and, two-thirds said they’re waiting to save a down payment before they think about buying seriously.
It’s too bad because you don’t need to save a big down payment to buy a house today. You don’t even need to save a small one!
These outdated ideas have been burned into the collective U.S. psyche, and are holdovers from the 1960s and 1970s when fewer loan choices existed.
There are 4 mortgage loans you can look at if 100% financing is something you want to do.
- The VA Loan, for veterans and members of the military
- The USDA Loan, for buyers with a modest income and modest homes
- The Doctor Loan, for physicians and medical professionals
- Other loans, when combined with a down payment grants from your city
It should be noted that not everyone will be eligible for a 100% mortgage.
The VA loan, for example, is for military borrowers only; and the Doctor Loan is limited to doctors and other medical professionals.
Buyers do have low-down payment options, though, and it’s always good to hear about them because — even if you ultimately choose to pass — it’s better to have your loan officer share all of your loan choices instead of just some.
Are you a first time home buyer?
Let us know if you’ve done this before - whether you’re a seasoned pro or buying for the first time. We’ll share the perfect information with you as you need it.
Do mortgage calculations make you anxious or uncomfortable?