The Biggest Misconception About Mortgages - The Minimum Down Payment Requirement

The biggest misconception about mortgages is that 15%, or greater down payment is required.  According to a Zelman & Associates survey, 38% of 25 to 29 year-olds and 42% of 30 to 34 year-olds believe a minimum 15% down payment is required to qualify for a mortgage to purchase a new home.  39% of all respondants who participated in the survey believed a minimum 15% down payment is required. 


According to Freddie Mac, a person "can get a conforming, conventional mortgage with a down payment of as little as 5%".  More than 1 in 5 borrowers who took out conventional, conforming mortgages in 2014 put down 10% or less!

Christine Boyle, VP and Head of Single-Family Sales & Relationship Management at Freddie Mac said "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%."

There is no better time than today to purchase a new home, or 2nd home, or investment property.