If you are a first-time home buyer in Boston, MA you must
consider how much loan you can afford before you go shopping for that dream
house. But what about the down payment? The
largest obstacle renters face when planning to buy a home is saving for a down
payment. This challenge is amplified by rising rents, which has eaten into the
amount of money renters have leftover for savings each month after paying
expenses.
In
combination with higher rents, survey after survey has shown that
non-homeowners (renters and those living rent-free with family or friends) believe
they need to save upwards of 20% for their down payment!
According
to the “Barriers
to Accessing Homeownership” study commissioned in partnership between
the Urban Institute, Down Payment Resource, and Freddie Mac, 39% of
non-homeowners and 30% of those who already own a home believe they need
more than a 20% down payment.
The percentage
of those who are aware of low down payment programs (those under 5%) is
surprisingly low at 12% for non-homeowners and 13% for homeowners.
In a
recent Convergys
Analytics report, they found that 49% of renters believe they need at
least a 20% down payment.
Contrary
to these beliefs - the median down payment on loans approved in 2018 was only
5%! Those waiting until they
have over 20% may already have enough saved to buy now!
There
are over 45 million millennials (33%) who are mortgage ready right now, meaning
their income, debt, and credit scores would all allow them to qualify for a
mortgage today!
If
your five-year plan includes buying
a home in Boston, meet with a local real estate professional who can help
you determine what it will take to make that plan a reality. You may be closer
to your dream than you realize!
And if you are still searching
for that perfect Boston
Home, let a local expert help you out. Buying a home is an exciting
and complex adventure. It can also be a very time-consuming and costly one if
you're not familiar with all aspects of the process. Taking the time to learn
about the process and your options is critical to making the best-informed
choices in order to achieve your own particular goals.
Please feel free to contact
me, I look forward to hearing from you soon!
Lucas Garofalo
Keller Williams Realty
(617) 861-3631
Lucas@LucasBostonHomes.com
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