Many people today believe that in order to purchase a home, you need a 20 percent downpayment. Studies show it’s one of the most enduring home buying myths. In reality, the median downpayment among all home buyers is only about 10 percent. For first-time home buyers (comprising more than one third of all home buyers), the downpayment is significantly lower, in the 5 percent range. At Primary Residential Mortgage, we have low downpayment options to help families buy a home and start investing in their future.
In all, about 88 percent of home buyers finance their home purchases. Some other home financing facts:
- For 59 percent of home buyers, the main or only source of their downpayment is their personal savings. Thirty-eight percent of home buyers use all or part of the proceeds from the sale of another home, contributing to a larger downpayment for repeat buyers compared with those purchasing a home for the first time.
- For 13 percent of buyers, the most difficult step in the home buying process is saving for a downpayment. Of those buyers, nearly half say that student loans made saving for a downpayment more challenging. Forty-two percent cite credit card debt as being their primary challenge; 37 percent cite car loans.
- Of all home buyers surveyed, 65 percent are married couples, 18 percent are single females, 7 percent are single males, and 8 percent are unmarried couples.
Are you ready to purchase a home? We’re here to help you get started! Call us at (206) 353-7167 and get started on your own home buying journey.
