In a recent survey conducted by Genworth Financial Inc. at the Annual Mortgage Bankers’ Association Secondary Market Conference, mortgage professionals said that first-time buyers still believe that a 20% down payment cost is necessary to buy in today’s market.
Almost 40% of mortgage industry professionals surveyed think that a lack of knowledge about the home-buying process is keeping potential buyers on the sidelines. Saving for a down payment cost is often a huge barrier for first-time homebuyers to make the jump into homeownership.
If homeowners think that they need a down payment cost of 20% to enter the market, they also think that they will have to wait years (in some markets) to come up with the necessary funds to buy the dream home of their dreams.
Down payments seem to be the greatest source of confusion cited in this survey. See the results broken down in the chart below:
Rohit Gupta, CEO of Genworth Mortgage Insurance had this to say,
“While first-time homebuyers continue to drive the purchase market, we believe many are staying on the sidelines due to the misconception that a 20 percent down payment is required to secure a mortgage.
There are various low down payment options available today that allow prospective homebuyers to reach their dreams of homeownership sooner. It is crucial that, as an industry, we proactively educate eligible borrowers about solutions that will enable them to buy a home when they’re ready.”
Don’t let a lack of understanding of the home-buying process keep you and your family out of the housing market. Let’s get together to discuss your options!
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