Freddie Mac recently discussed the confusion many first-time homebuyers have about the down payment they need in order to buy:
“Did you know that the average down payment among first–time homebuyers is 6% and it's 13–14% for repeat buyers…It's possible to put down even less.Brenda Garcia Lemus of John Burns Real Estate Consulting reports that this is also the case with newly constructed homes:
Many potential homebuyers think that only the FHA helps make mortgage loans with low down payments. Not true.
Freddie Mac's Home Possible mortgage products let qualified homebuyers put down as little as 3%.”
“Our home-builder clients sell hundreds of homes every weekend to buyers with 5% down payments and below average credit scores. Yet, many middle-income households with average credit and access to a 5% down payment assume they cannot become homeowners because of the ‘tight credit’ headlines.”