Blog

First-time Buyers Putting Less Down

First-time Buyers Putting Less Down

Baby claps

Less Than 6%

The National Association of Realtors (NAR) recently revealed that there has been an increase of first-time buyers making a down payment of 6% or less (between December 2014 – Februrary 2015) compared to the previous year.

For example:

  • 2014: 61% of first time buyers
  • 2015: 66% of first time buyers

Recent decisions by Fannie Mae and Freddia Mac to offer 3% down payment options to qualified buyers is indeed impacting the market.

The new lending guidelines by Fannie Mae and Freddie Mac will enable creditworthy borrowers who can afford a mortgage, but lack the resources to pay a substantial down payment plus closing costs, to get a mortgage with 3% down. These underwriting guidelines provide a responsible approach to improving access to credit while ensuring safe and sound lending practices.

Mel Watt, FHFA Director

Here is a helpful resource: Home Possible at a Glance – hp_glance.pdf

Feel free to contact us with any questions. We’re here to help smooth your path to a new home.