HomeBuyer's Believe Wrong

Genworth Mortgage Insurance recently conducted a survey and they concluded that potential first-time homebuyers are hindered from joining the real estate market because they cannot meet the 20% down payment rule-of-thumb. Homebuyers may think they are required to have 20% in a down payment, but this is not the case. It's totally possible to put down far less and still get a house, but your chances diminish. 

This survey took place at the 2017 Mortgage Bankers Association Secondary Market Conference in New York City. 

The survey found 28% of the respondents believe that a 20% down payment is a requirement to buy a home. On top of that, 41% of industry executives were surveyed and found they believed potential borrowers who know 20% is not a requirement believe it's far more difficult to buy a home without it. 

A whopping 39% of mortgage industry professionals believe that consumers' lack of knowledge of the process is what is actually hindering them from joining the market.

Another aspect behind this was a lack of inventory at 28%, and crazy student debt at 27%. The rising interest rates showed up at around 6%. 

A lot of first-time home buyers are passing on buying a home because they mistakenly believe they need 20% down, even though this category of buyers is leading the purchasing market. There are many options available to allow homebuyers to become a homeowner without coming up with a lump of cash. There needs to be more education so we can get people into homes.

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