32% of Americans plan on purchasing a home within the next five years, according to a 2018 Home Buyer Report. Yet, affordability and limited inventory are making it a big leap for first-time homebuyers. At the same time, many first-timers are holding off on jumping based on misconceptions about mortgage requirements and down payments.
Unfortunately, many first-time homebuyers are making these decisions under false notions. In fact, according to Bank of America’s 2018 Homebuyer Insights Report, nearly 50% of renters believe they need 20% down in order to purchase a home. Asa result, buyers who lack the right knowledge are being driven to rely on internet-based lending where you can simply “click to qualify” rather than work with a traditional mortgage originator who can educate them on true mortgage requirements and the fist-time homebuyer programs available to them.
To help alleviate that, Bank of England Mortgage has developed Four Myth Busting facts for potential first-time homebuyers to help set the record straight.
- You don’t need 20% down to buy a home. There are programs that start as low as 3%. Some credit union programs even offer 100% financing to first-time homebuyers.
- Loan officers are still your best resource. Even with technology at your fingertips, an experienced loan officer is always your best bet when buying your first home.
- Qualifying for loans has never been easier. Mortgage lenders today are allowing lower down payments and more flexible guidelines for low to moderate income borrowers.
- Down Payment Assistance loans are here to help. DPA Grants decrease upfront homebuyer costs.
Bottom line, don’t hold off on buying a home this year. Contact us to find out if you qualify for zero or low down payments.