Which category do you fall into as a Homebuyer: the Educated 38% or the Other (we won't say foolish), 62%?
According to the ‘2019 Home Buyer Report’ conducted by Nerdwallet, many first-time buyers still believe they need a 20% down payment to buy a home in today’s market:
“More than 6 in 10 (62%) Americans believe you must put at least 20% down in order to purchase a home.”
In a competitive market like Silicon Valley, people often assume 20 percent down payment is the minimum needed to buy a home. Yet I've successfully helped home buyers paying as little as 3.5% down (sometimes even with gift funds) to buy that all-important first house in San Jose, Cupertino and Santa Clara, Calif.
The bigger danger of this erroneous thinking is when buyers presume they need a 20% down payment, they figure they’ll need to wait several years to come up with the funds. Instead of successfully levaging themselves using OPM (Other People's Money), buyers can fall further behind over as home prices appreciate, thereby increasing the affordability gap and putting homeownership out of reach. As reported in Nerdwallet,
“The truth: 32% of current U.S. homeowners put 5% or less down on their home, according to census data.”
Don't be part of the Other 62%. Explore today's unique opportunities with an experienced real estate expert and a savvy lending professional to find out your buying power and home buying options fully.
Be part of the Wise 32% of Homebuyers-Just Call 408-252-8900 Now.
Images courtesy of Keeping Current Matters and Nerdwallet and Walter DiLoreto of PHPHouses.com.
Thanks for reading "Home Buyers Are You in the Wise 38% or Other 62%?"
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