For many who desire to become homeowners, saving for a down payment is often the biggest hurdle. According to a report from Zillow, funding the requisite 20 percent down on an average home can be more than two-thirds of household income for the median wage earner.
"It's a big number," said Zillow's senior economist Aaron Terrazas. "Very few are saving for a down payment in one year, it's something they do over multiple years. And for renters who have been faced with rising rent and health care costs, it's very difficult to put away any money at all."
Home prices are likely to continue to rise throughout the summer. Low down payment mortgage options are often appealing alternatives. FHA loans, insured by the federal government, allow homebuyers to put as little as 3.5 percent down, bringing the American dream of homeownership closer to reality.
Today, conforming no-point 30-year fixed mortgage rates are averaging 4.125 percent while 15-year rates are near 3.25 percent.
Do you have a question for Real Estate & Mortgage Analyst Mehran Aram? Submit your queries about a home purchase, refinance, or reverse mortgage via Aramco.Biz, social media (#AramcoReport), or over the phone at (866) 381-8888 and your questions may be featured in an upcoming article.