Category : Home Loans
5 Common Down Payment Beliefs (Misconceptions) That Could Be Holding You or Your Clients Back
Misconception 1: Loan programs are only for new first time homebuyers. While there are many first-time home buyer programs out there, it’s important to take note that the meaning of a first-time homebuyer is someone who has not owned a home in three years. Additionally, more than 37% of First Time Buyer programs might not even have a first-time homebuyer requirement.
Misconception 2: Homeownership programs make financing more difficult. There are now more than 2,500 programs available across the country and 85% have funds available for new house buyers. It is recommended that new potential new buyers seek homeownership education. It’s often a necessity with down payment programs and it provides} buyers self-confidence and assurance in their ability in the buying process and knowledge about financing options, including down payment assistance programs as well as spending budget and cash management strategy.
Misconception 3: You should put 20% down. Today, a 20% down payment is not required and with regards to the buyer’s situation, it might not be optimal or advisable. Down payment assistance programs allow buyers to save on the down payment, retaining savings for property maintenance and improvements. Some of these present programs include grants, first mortgages with below-market interest rates and some annual tax credit.
Misconception 4: Down payment assistance programs are available in my area. With some investigation you will discover some programs available in every community across the country – rural and urban. It’s important for buyers to search for these programs early in their home-buying process as it may help determine the best area part of town or price point.
Misconception 5: It’s too expensive to buy in the present market or in my area. More than 14% of programs are designed for individuals providing an important community service, including educators, protectors, workers in the health care industry, veterans and other special community servers. This is especially helpful in high-cost markets, these programs help these critical personnel stay and live with-in the communities they serve.
Recent statistics indicate that over fifty eight percent of all home buyers were First Time Home Buyers. For more First Time Homebuyer information just click here.