The largest obstacle renters face when planning to buy a home is saving for a down payment. This challenge is amplified here in the Colorado Real Estate Market where rising rents and home prices make it harder and hard for people to buy a home. This 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.
HOWEVER...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!
Here in the Colorado Real Estate Market we have many different loan options for first time buyers. There are loans available with as little as 3-5%, and even some zero down payment loans available, in terms of grant money, available through the Colorado Housing and Finance Authority (CHFA).
Bottom Line
If your five-year plan includes buying a home, give me a call to discuss. I can put you in touch with one of my preferred lenders and together we can make that plan a reality. You may be closer to your dream than you realize!
Sally Grenier
Broker Owner
Metro Brokers / Grenier Real Estate
303.475.4508 CELL
sally@sallygrenier.com
www.sallygrenier.com
Kim Clancy
Cross Country Mortgage
515 Briggs St. Suite E
Erie, CO 80516
949-933-9058 CELL
kclancy@myccmortgage.com
crosscountrymortgage.com/Kimberlee-Clancy