Mortgage Misconception
The availability of mortgage credit is not at the same level
that it was during the boom in housing (2005), and that’s good news. However,
the constant headlines which talk about “tight credit” are causing
some potential home buyers to doubt their ability to purchase. We want to
rectify the misconception of what is required for a down payment in order to
purchase a home in today’s market.
Freddie Mac recently discussed the confusion many
first-time homebuyers have about the down payment they need in order to buy:
“Did you know that the average down payment among first–time
homebuyers is 6% and it's 13–14% for repeat buyers…It's possible to put down
even less.
Many potential homebuyers think that only the FHA helps make
mortgage loans with low down payments. Not true.
Freddie Mac's Home Possible mortgage products let qualified
homebuyers put down as little as 3%.”
