Among the first hurdles that home buyers have to to content with is saving for a down payment.
Traditionally, if you had a 20% down payment, a buyer can secure financing and buy a property. However, for a lot of folks dreaming about purchasing a home, this can represent a huge upfront investment putting home ownership out of reach.
If your creditworthiness is strong enough, then a 20% down payment may not be required at all to buy a house. Actually, in some instances you do not even require a 10 percent down payment. According to the National Association of Realtors: During 2017, a good 61 percent of first-time buyers bought a home with a down payment of 6 percent or less.
FHA loans represent the best low-down-payment mortgage option for many first-time home buyers and is making home ownership a reality for a new generation of homeowners. The FHA program is great for folks possessing the financial means to responsibly pay their mortgage payments but may not have 20 percent down payment to get into the market.
Do not let the prospect of a hefty down payment push you away from home ownership since it is in my opinion the most consistent wealth builder right now. Begin talking to creditors and let's say that you don't have enough cash for a down payment, sometimes these lenders have access to down-payment assistance programs that make the potential for owning a house within your reach.