Affording the monthly mortgage payment is managable for many young would-be homebuyers but coming up with the cash for a down payment has proven to be quite challenging. As a result, the use of down payment assistance programs doubled between 2013 and 2016, according to a new study.
The Wall Street Journal reported this week that a Freddie Mac analysis of the National Survey of Mortgage Originations shows the share of buyers using a down payment assistance program rose from five percent to 10 percent over a four-year period.
The most common low down payment loan is available in the form of an FHA loan which has less stringent credit requirements and allows a home purchase with as little as 3.5 percent down.
Meanwhile, conventional conforming no-point 30-year fixed mortgage rates are averaging 3.875 percent and 15-year rates are near 3.375 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.