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A new report is shedding some light on the fact that home buyers still aren’t quite aware of what the down payment requirements are for home loans.

Fannie Mae recently released a study that highlighted various misconceptions consumers have about the home loan process. Down payment requirements were a huge one. Specifically, the report, which included responses from over 3,000 people, highlighted the following misconceptions:

  • The majority of consumers aren’t aware of how much of a down payment they need.
  • 13 percent believed they needed a 20 percent down payment.
  • 1 out of every 5 respondents believed they needed a down payment of between 1 and 5 percent.

At Element Mortgage, we are on a mission to dispel these myths about down payments because we believe it is a major, unnecessary roadblock that many potential home buyers are experiencing. The fact of the matter is there are various loan programs that have low down payment requirements.

For example, FHA Loans, which are backed by the Federal Housing Administration can have a minimum down payment of 3.5 percent*. In addition, FHA Loans can allow for gift funds to be used toward the down payment. For any Active duty military personnel, Veterans or surviving spouses, a VA Loan could be an option, which offers 100 percent financing**.

The bottom line is this: Not every home loan requires a large down payment. So, if you are thinking about purchasing real estate in the Roseville area, don’t let that hold you back if you think now is a good time.

Contact one of our mortgage consultants today if you have any questions about down payments.

* Qualifying factors may apply
**Qualifying factors may apply. Example VA: Loan amount $300,000, 0% down, monthly payment without taxes and insurance $1,844.77 APR 4.432%.

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