No, You Don't Need 20% Down!

Posted by Steve Vincent on Nov 10, 2014 11:53:31 AM

In qualifying for a mortgage, Buyers, buying your first home, low down payment mortgage

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In a recent survey conducted by Wells Fargo, 44% of respondents said they believed a minimum 20% down payment was required to buy a home today.  44%!!   Almost all of them said they thought home ownership was a great thing and that they'd like to own, but many thought they couldn't qualify for a mortgage.

If thoughts like this are keeping you on the sidelines and out of the housing market, it's time to adjust your thinking!

As reported by Freddie Mac, the truth is 40% of all home buyers today are putting down LESS than 10%!  Since 2010, the number of buyers financing more than 90% of the purchase price has tripled!

I  can tell you that right now, here in the Triad, there are dozens of programs available to get you into a home of your own for as little as a 3% down payment.  For a $150,000 house, that's just $4,500!

The Wells Fargo survey also indicates that many potential home buyers are staying out of the market because they believe they must have very good credit to qualify for a loan.

It is true that it is not as easy to qualify for a mortgage today as it was in, say 2006, when almost anybody could get a loan for almost any amount!  And in the wake of the ensuing collapse of the real estate market, lenders were forced to tighten the requirements.  There was a time when it was not easy to qualify.

But since about 2012, lenders have slowly relaxed to the point where many working families can qualify for a mortgage.  A reasonably good credit report is required - and you'd be surprised how easy it is to repair a not-so-good credit report - but certainly not credit perfection.

If you are renting a home or apartment and paying $800, $1,000, $1,200 a month or more in rent and think someday, someday, you'll maybe buy your own home, someday may have already arrived.  You really owe it to yourself to talk with an expert to find out what's available and how to qualify.

Of course, the best experts in town are at GreatNest!  We'd be happy to spend an hour with you discovering what might be available in terms of financing and what that might enable you to purchase.  There's no cost or obligation and we won't pressure you into buying anything.  Call us today at (336) 790-5210 and get started on your own home ownership dream!