Having 20% to put down on buying a home is great, but it's certainly not the norm in today's market. Still, many buyers think it is and that may be keeping some buyers back from buying a home. This seems to be especially true for younger buyers.
A whopping 39% of non-owners say they believe they need 20% saved for a down payment in order to buy a home. Another 26% think they need 15 to 20% down, and 22% think they would need 10- 14% down. These statistics come from NAR's 2017 Aspiring Home Buyers Profile report. It is hard to believe that so many buyers don't know that they can actually afford to buy a home NOW.
That myth of needing so much down is just that, a myth! The actual average down payment in 2016 was 11%. That is just an average! A lot of buyers are paying much less than that down. First-time buyers need to know that there are FHA loans that require only 3.5% down and for some areas and buyers, you can get 100% USDA loans!! And let's not forget about the 100% VA loans! In fact, in that same report, 16% of buyers under the age of 35 put NO MONEY DOWN to buy their home!
The actual amount a buyer needs depends on their situation, the property and the price of the home they are looking for. But there are many mortgage options that offer the opportunity to make low or even no down payments. These loan programs don’t require perfect credit either.
Are you dreaming about homeownership but have been afraid you don't have enough down payment or your credit isn't good enough? Give us a call or email today! As experienced local Realtors, we can refer you to a local lender that can help you get a loan that fits your needs. We even have lenders that will help you get your credit score up if needed as well.
The beginning of a new year is always exciting to me. It is full of hope and possibility. I am an optimist at heart and always start the year thinking it will be a wonderful year for all! Being a Realtor in Upstate SC, I wanted to make a few predictions for what 2017 will be like in the real estate market for our area.
In the end, I think it will be a great year for our market. As with all years, it will have it's ups and downs, but I think our area will continue to grow and prosper. Following are a few of my 2017 predictions:
So there you have it, my predictions for Upstate SC ( Anderson, Greenville, Pickens and Oconee Counties of SC). What are your thoughts? How do you think the real estate market will do in 2017?
Contrary to popular belief, buyers shop for homes all year round, including the holiday season. In fact, sellers who put their homes on the market during the holiday season (roughly between November andJanuary) may have an advantage because there are fewer houses on the market so there's less competition. There are several other reasons to consider putting your home on the market during the holidays:
1. Many home buyers have extra time off during the holiday season so they have more time to look for their new home.
2. Because of the limited supply of homes for sale, sellers may be able to receive a higher purchase offer than expected.
3. Buyers looking for homes during the holidays are usually highly motivated to buy before the end of the year so they can get extra itemized income-tax deductions for mortgage loan fees, interest and pro-rated property taxes.
4. Festive lights and holiday decorations can help a home "show better."
5. Because January is traditionally the month for transfers, having a home on the market at the end of the year can capture the transferees who may not be able to wait until the Spring to buy a home.