A 20 percent down payment used to be the standard many years ago, and there was plenty of talk about lenders reverting to it after the housing bubble burst back in 2007 and 2008. I bet you'll be happy to know that most buyers put down far lass than a fifth of the total price to make their purchases.
In fact, that same Ellie Mae report points out that over 64 percent of young buyers — that is, millennials under the age of 35 — put less than 20 percent down. Even better, 36 percent of buyers made down payments of just 5 percent — or less.
Don't forget that an FHA loan is still a great way to get into the housing market if you don't have piles of cash lying around for that down payment. These federally subsidized loans will let you make a 3 percent down payment as long as you pay insurance on the principal as you build equity. If you're a veteran, you could even qualify for a 0 percent down payment. (Thank you for your service!)
The lesson? Shop around! There are plenty of ways to structure a mortgage that works for you, and you don't have to have a 20 percent down payment or a 780+ credit score to make it happen. Once you feel better about your mortgage outlook, you'll need a real estate agent with experience to help you find the perfect home. Give us a call when you're ready to start looking — we're always happy to help!