Volume 1, Issue 8 | August 2014
HOW MUCH OF A DOWN PAYMENT
Do you actually need?
A recent survey by Zelman &
Associates revealed that 38% of those
between the ages of 25-29 years
old and 42% of those between the
ages of 30-34 years old believe that
a minimum of 15% is required as a
down payment to purchase a home.
A recent questionnaire administered
by Freddie Mac showed that over 50%
of all respondents thought 20% was
required as a down payment.
In actuality, a purchaser may be able
to put down far less.
Freddie Mac, in a recent blog post
addressing the issue, confirmed that
there is misinformation regarding the
amount necessary when determining
the down payment for a home
purchase:
“Did you know 40 percent of today’s
homebuyers using mortgage financing
are making down payments that are
less than 10 percent? And how about
this: since 2010, the number of people
putting down less than 10 percent
for conventional loans has grown
three fold. So, not only are low down
payment options real, they represent
a significant portion of today’s
purchases.”
In a separate Executive Perspectives,
Christina Boyle, Freddie Mac’s VP
and Head of Single-Family Sales &
Relationship Management explained
further:
• A person “can get a conforming,
conventional mortgage with a
down payment of as little as 5
percent (sometimes with as little
as 3 percent coming out of their
own pockets)”.
• Qualified borrowers can further
reduce the down payment coming
out of their own pockets to 3
percent by lining up gifts from
family or grants or loans from
non-profits or public agencies.
Ms. Boyle goes on to explain:
“Letting more consumers know how
down payments are determined could
bring more qualified borrowers off
the sidelines. Depending on their
credit history and other factors, many
borrowers can expect to make a down
payment of about 5 or 10 percent.”
PODCAST OF THE MONTH
Episode 220
Bill joins the KLAD Wake-Up crew to
discuss local real estate statistics for
June 2014. They also discuss what it
means to have an “underwater home”.
Hear the podcast in its entirety by
visiting http://bit.ly/Episode220
DIY VIDEO TIP
Lawn Care & Maintenance
Lawn care is not difficult but can be
time consuming. Unless you are like
me and it is more like therapy and less
like work.
This video from our friends at The
Home Depot explain hot to best care
for your lawn.
http://bit.ly/DIYTipAugust2014
If you are saving for either your
first home or that perfect move-up
dream house, make sure you know all
your options. You may be pleasantly
surprised.
http://bit.ly/1m4e05u