The National Foundation for Credit Counciling has conducted a survey and found that 1/2 of Americans don't believe they would ever have 20% saved for a down payment for a home purchase. If they can't scrape together a 20% down payment and the Conventional Loan Private Mortgage Insurance companies are tightening their underwriting standards monthly, where are 50% of American's going to go to get mortgage financing?
What is also obvious (thinking on what is on the other side of the coin) from this study is that 50% of Americans are okay with a 20% down payment? Not at all, read on...
Here's what the rest of the survey tells us about what the other 50% of Americans are thinking (50% say they will never have a 20% down saved and here is what the other 50% say):
- 12% say 20% down is okay (Conventional loan works good here-one caveat is that credit scores need to be really quite good/great to get reasonable/best rates available)
- 20% need a smaller down (FHA loan to the rescue!)
- 18% need a gift (Again, FHA accomodates this need!)
I have always been an FHA lender in my mortgage career and 75% of the over 3000 closed loans since 1991 have been FHA loans!
I look forward to providing professional mortgage services to those needing help with mortgage questions or needs!