July 30, 2021

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Mortgage News

For Many Home Buyers, a 5% Down Payment Isn’t Enough

Would-be home buyers without huge mountains of money are left on the sidelines.

By doing Charged housing marketPrices are rising and homes in the market are routinely sold for far more than the list price. Those who cannot afford large down payments are often the losers.

According to a survey by the National Association of Realtors, half of existing home buyers who took out mortgages gave in at least 20% in April. In the 10 years of record, that percentage has reached or exceeded 50% three times, all since last fall. A quarter of existing home buyers paid cash in April highest level since 2017said NAR.

Oscar Reyes Santana has been looking for an apartment with his parents and siblings in California’s San Fernando Valley for more than a year. They are all first time buyers and are earmarked for a 5% deposit.

The family bid on at least five houses, bidding at least $ 30,000 above the asking price each time, but they lost each time, said 23-year-old Reyes Santana.