69% of Buyers are Wrong About Down Payment Needs

Home / Blog / 69% of Buyers are Wrong About Down Payment Needs

69% of Buyers are Wrong About Down Payment Needs

According to a recent survey conducted by Genworth Financial Inc. at the Annual Mortgage Bankers’ Association Secondary Market Conference, mortgage professionals say that first-time buyers still believe a 20% down payment is necessary to buy in today’s market.

Nearly 40% of mortgage industry professionals surveyed believe that a lack of knowledge about the home-buying process is keeping potential buyers on the sidelines. Saving for a down payment is often cited as a huge barrier for first-time homebuyers to make the leap into homeownership.

If homeowners believe that they need a 20% down payment to enter the market, they also believe that they will have to wait years (in some markets) to come up with the necessary funds to buy their dream homes.

The greatest source of confusion cited in the survey results centered around down payments. The results are broken down in the chart below:

69% of Buyers are Wrong About Down Payment Needs | Bridge Builders

Rohit Gupta, CEO of Genworth Mortgage Insurance had this to say,

"While first-time homebuyers continue to drive the purchase market, we believe many are staying on the sidelines due to the misconception that a 20 percent down payment is required to secure a mortgage.

There are various low down payment options available today that allow prospective homebuyers to reach their dreams of homeownership sooner. It is crucial that, as an industry, we proactively educate eligible borrowers about solutions that will enable them to buy a home when they're ready."

Bottom Line

Don’t let a lack of understanding of the home-buying process keep you and your family out of the housing market. Let’s get together to discuss your options!

02229960 3bf8 43b5 bf40 46c076d253d1 9421cd2a 0b33 484f ae1a 3a32eb3bef25 ce185326 8975 42d4 b1b0 959ccdcca1f8 28193f4c 2e72 4047 9e37 c86c72a0b103 96df7ab4 ea33 446d 9863 76fa09f23736 b8797313 5c3e 436c b552 ce23c75afb6a 135dfba5 3ba0 4d65 a185 d3924784ed97 d83e496b eca1 43f2 ba14 65064724e617 a1f50de7 d1eb 4efc 87d0 0a8ce404d468 e126abc6 aafb 4ada 9d6a 2c87d60912ac 6a49f4bf 151e 43d2 b04d 9513638c9d27 73c13069 c64a 4142 a699 b93f31c0106f 953a2522 1310 4b2f b6c7 546a5ac9e463 ea78b6cc e719 4b6e aca9 70550951cf67 c286d104 0c78 4953 aa9d 8a85cfa9aaa2 10b19610 5baf 4c14 a8c6 cb43c87ebadb 471a9720 90d5 418a 9943 50e228b20652 773fb621 a3c6 4a77 848a afef9563f640 ca9dbe40 c610 428c a7b8 569713b23f16 5be56561 66f5 4e20 be63 b329b8ad628c 27a6e578 4295 455a 8b58 99e76bda103f ca0701fb 50a8 4a50 b562 56537600d730 1bcfc8f3 cf44 42bc 9777 5e2a0cf30b20