Freddie Mac’s Vice President and Head of Single-Family Sales & Relationship Management, Christina Boyle, released an article this week addressing the misconceptions about down payment requirements when buying a home.
Boyle’s article referenced survey results from Zelman & Associates who found that the 39% of respondents believed that “the minimum down payment requirement is at least 15 percent of the purchase price” on a home. Of those respondents who held this belief, 38% were 25-29 year olds and 42% were 30-34 year olds. Additionally, the survey results indicated that 30% of the 25-29 year olds, and 40% of the 30-34 year olds, responded that they did not believe they could qualify for a mortgage. In reference to the survey findings, Boyle stated, “That would mean 60 to 72 percent of the traditional ‘first-time’ homebuyer demographic may be underestimating their potential for getting a conforming, conventional mortgage with a low down payment.”
To get qualified homebuyers off of the sidelines, Boyle’s article called attention to the need for consumer education on down payment requirements, qualifications and available options. To read more, visit http://bit.ly/1ykEjf5.