Heartbreakingly, a high percentage of could-have-been owners abandon their search for a home because they don't have enough money for a down payment.
Or so they thought.
Here's a fact that will blow your mind, the median down payment hasn't been 20% since 2005, that's been quite a misconception. The median down payment works out to around 12% today. And that's the median.
Certainly, a 20% down payment helps create a stronger offer, or lowers your monthly payment towards your mortgage, but it is NOT necessary if that is the one and only thing holding you back from buying a house.
No matter who you are, there are ways to lower your payment, and for first time home buyers you can have a down payment as low as 3.5%. In Columbia IL with a median house price of $125,000 that's $4,375 compared to $25,000 for 20% down. That suddenly seems a lot more doable.
The graph below shows, per age range, what the median down payment is:
For those of you afraid of not having 20% down, this has to make you feel better! Not only is it okay to put less than 20% down, but it is actually normal. The misconception of 20% has cost people homes!
With this new information in mind, are you going to begin your house hunt? Contact me at 618-719-7553 or chasetaakehomes@gmail.com to get started!