Contact Us Now! Ask Us Anything
480-470-8505 Call Us Today

You Do Not Need 20% Down to Buy a Home

Dated: 02/05/2019

Views: 57

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 the “Barriers to Accessing Homeownership” 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.


In a recent Convergys Analytics report, they 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, let’s get together to determine what it will take to make that plan a reality. You may be closer to your dream than you realize!

Blog author image

Curtis Johnson

Curtis is a Best Selling Author, the Founder and CEO of The Curtis Johnson Team Powered By eXp Realty, where he runs a dynamic Real Estate Team having sold 5,000 residential homes. The Wall Street Jou....

Latest Blog Posts

The Cost of Waiting to Buy a Home: Interest Rates Edition

Some Highlights:Interest rates are projected to increase steadily heading into 2020.The higher your interest rate, the more money you will end up paying for your home and the higher your

Read More

The Surprising Profile of the Real Estate Investor

Over 10% of all residential homes are purchased by investors, and that number continues to rise. Who are these investors?Many have speculated that the large institutional conglomerates such as

Read More

What a Difference a Year Makes for Home Sellers

Over the last few years, many sellers have been hesitant to put their houses on the market because they feared not being able to find another home to buy.We’ve reported on inventory

Read More

Should I Refinance My Home?

With the recent lower interest rates, many homeowners are wondering if they should refinance.To decide if refinancing is the best option for your family, start by asking yourself these questions:Why

Read More