Realtor Charleston SC: 61% of First-Time Buyers Put Down Less than 6%
As 2018 gets rolling, the Charleston SC real estate market continues to remain strong for buyers and sellers.
Many would be buyers think they either do not qualify for a mortgage or that they do not have enough money for a down payment.
There’s good news for anyone that would like to purchase their first home in 2018 and stop throwing away money on rent.
“61% of first-time homebuyers purchased their homes with down payments below 6% from October 2016 through November 2017.”
For some reason the misconception remains that you need 20% for a down payment in order to purchase a home. That is simply not true.
“The median down payment for all buyers in 2017 was just 10% and that percentage drops to 6% for first-time buyers.”
In the Charleston SC area there are plenty of loan options that will let first time home buyers purchase a home with even less than 6%.
If you are currently serving in the military, reserves, or are a veteran, then you can use your VA benefits and receive a home loan with 0% down.
For certain properties outside of city areas there are USDA loans, which also require 0% down.
For everyone else there are FHA loans which only require 3% down.
Owning A Home Beats Renting
Every month you have a housing payment. If you rent, you are paying the landlord’s mortgage.
But if you own a home, you are paying your mortgage and enjoying the benefits of home ownership (such as building equity and tax deductions).
Another benefit of owning is the fact that with a mortgage payment, your monthly housing payment remains the same for 30 years.
If you rent, your monthly housing payment continues to go up over time.
“Looking into 2018, rent is expected to continue gaining. More widespread rent growth could mean home buying demands stay high, as renters who can afford it move away from the unpredictability of rising rents toward the relative stability of a monthly mortgage payment instead.”
Buyer demand remains strong, both nationally and in Charleston SC. Inventory remains low, so there is plenty of competition for the homes that are currently on the market.
If you are one of the many first-time buyers who is not sure if you would qualify for a low-down payment mortgage, let’s get together and set you on your path to homeownership!
Buying your first home doesn’t need to be stressful or difficult.
You just need the right Realtor. Charleston SC first time home buyers need an agent that will take time to answer questions and explain the home buying process–an educated buyer is a confident buyer!