If rising home prices have you down–in–the–dumps and concerned about affordability, think again. Low down payment mortgage options — some requiring as little as 3% down — are available for qualified borrowers and can offer you a path to homeownership.
Far too many homebuyers still believe they need a 20% down payment to purchase a home. Unfortunately, this is one of the biggest misconceptions in the market and is a perceived barrier to millions of aspiring homeowners.
In fact, the average down payment for first-time homebuyers is 5%, according to the National Association of Realtors®. Sure, you'll have to pay Private Mortgage Insurance (PMI) for a loan with less than 20% down, but this can be a nominal price to pay for being able to secure a home loan at today's mortgage rates. Buying now can also help you start building home equity.
Paying PMI can be a nominal price to pay for being able to secure a home loan at today's mortgage rates and start building home equity now.
Making Home Possible
Freddie Mac's Home Possible® mortgage is one option that can help qualified first-time homebuyers buy a home with as little as 3% down. With this option:
- Your down payment funds can come from a variety of sources, including a gift from a relative, employer-assistance programs, and down payment assistance programs.
- If you are a Do-It-Yourself-er, you can use your skills to help pay for your down payment and closing costs.
- Once you reach 20% equity in your home, you'll be eligible to cancel your PMI expense, potentially saving you thousands over the life of the loan.
Home Possible has made homeownership a reality for more than 260,000 families and counting. Reach out to your lender today to learn more about low down payment options that can help you attain homeownership.
Visit My Home by Freddie Mac® to learn all you need to know about the homebuying process, from A to Z.