Consumers Not Aware

More than half of Americans admitted they do not know the minimum required down payment needed to purchase a home. The findings of Bankrate’s new research revealed that 51% of Americans have no clue when it comes to a home’s down payment. Twenty-eight percent guessed that the standard recommended amount of 20% or more of the purchase price is needed. Meanwhile, 2% calculated that the minimum requirement is between 0% to 5% of the price, depending on the loan program.

Generally, the respondents’ perceptions indicated that consumers were not entirely aware of the various affordable loan programs, according to Bankrate. Deborah Kearns, an analyst at Bankrate, said — “Many homebuyers don’t realize that conventional loans require just 3% of the purchase price as a down payment and some VA and USDA loans don’t require anything at all,” Kearns said. “Local first-time homebuyer assistance programs can also lower your upfront, out-of-pocket costs substantially at closing.”

Source: The Wall Street Journal