Saving for a down payment remains the No. 1 obstacle to homeownership. Many American’s have good credit and have the income to qualify for a home loan — especially considering the fact that owning is cheaper than renting in most areas of the country. Yet, coming up with the cash is the problem.
Here is what most renters do not realize. There are several alternatives designed to lessen or eliminate the cash necessary to purchase. Many renters do not realize that they may be eligible for no-down payment programs if they are a veteran, a first time buyer, or live in a rural area.
Others can use techniques such as gifts or loans against 401K programs. Even the lender can help with special programs which can lessen or eliminate mortgage insurance and closing costs. Many times the issue is not a lack of resources, but a lack of education.