813.910.8020 Apply Now

Mortgage Broker Tampa, FL | Mortgage Lender Tampa Florida | Marimark Mortgage

  • Home
  • Homebuyers
  • Homeowners
  • Realtors
  • Investors
  • About Marimark
  • Contact Us
  • Mortgages
  • Apply Now
  • Current Mortgage Rates
  • Calculators
  • Testimonials
  • Blog
  • Videos
  • Featured In
Home / Blog / Down Payments / Down Payment is #1 Obstacle for Homebuyers

Down Payment is #1 Obstacle for Homebuyers

September 7, 2017 By Admin

Down Payment is #1 Obstacle for HomebuyersAccording to a recent study, the down payment is the biggest obstacle to buying a home. Two-thirds of U.S. renters believe that saving for a down payment is the biggest hurdle to buying a home, according to the first Zillow Housing Aspirations Report.

Saving for a Down Payment

Many Americans incorrectly think they must have a 20% down payment and closing costs to buy a home. These costs could equal $45,000 or more, even in more moderately priced metros.

Some prospective homebuyers are unaware of zero down payment and low down payment options, which we discuss later. As a result, they believe homeownership is unobtainable, which is really not the case.

Though millennials are driving the housing market today, they are often challenged with saving for a down payment. Many millennials have difficulty finding a job after college while also paying student loans, car payments, and credit card debt.

Fortunately, recent changes by Fannie Mae and Freddie Mac have made it easier to qualify for a mortgage. Many borrowers who had difficulty qualifying for a mortgage earlier this year, now qualify.

So, here are some tips to save money for a down payment on a home:

  • Learn how much you need to save by contacting your mortgage broker to be pre-approved for a mortgage.
  • Budget your finances and keep records.
  • Conserve on utilities and transportation.
  • Save money by couponing and shopping for sales.
  • Limit credit usage.

Zero Down Payment Mortgages

Borrowers eligible for a USDA or VA home loan can qualify for a zero-down payment mortgage.

USDA  home loans are designed to help people with low- to moderate- incomes in rural communities become homeowners. These loans feature a zero-down payment and are based on the appraised value of the home rather than the purchase price, which allows borrowers to include some closing costs and/or repairs in the loan.

To be eligible for a USDA home loan, borrowers must meet income guidelines, and the home must be located in a qualified area.

Veterans, active-duty personnel, reserve members, National Guard members, and some surviving spouses can qualify for a VA home loan, which also features a zero-down payment.

A few of the many additional benefits of a VA home loan include:

  • Negotiable and competitive interest rates.
  • VA rules limit the amount borrowers can be charged for closing costs.
  • Closing costs are comparable with other financing types and may be lower.
  • The seller may pay closing costs.
  • The right to prepay the mortgage without penalty.
  • VA assistance to veterans in default, due to temporary financial difficulty.

Low Down Payment Mortgages

There are also several low down payment options for borrowers who do not qualify for a USDA or VA home loan, one of which is as low as 1%.

For many people, an FHA home loan with a 3.5% down payment is a good choice. And another option, especially for younger people, is a gifted down payment from a parent or grandparent.

Watch our video about low down payment mortgages.  Mary Catchur explains many of the down payment options, along with some of the pros and cons.

Marimark Mortgage

Marimark Mortgage is based in Tampa, Florida, and serves the mortgage needs of homebuyers, homeowners, and investors in Florida, Virginia, and Pennsylvania.

We specialize in mortgages for first-time homebuyers, conventional home mortgages, refinance loans, reverse mortgages, and FHA, VA, and USDA mortgage options. In addition, we’ve worked extensively with cash-out refinancing and help clients to lower their monthly mortgage payments.

To get started with a mortgage to buy your next home, please fill out our Quick Mortgage Application or contact us.

 

Opt In Image
Stay Informed, It's Your Money
Marimark Mortgage Newsletter

The Marimark Mortgage Newsletter will keep you informed with important events in the mortgage industry that could impact your finances.

We especially focus on ways to save money on your current and future mortgages. And, we continually share the information we share with our clients, because we believe informed consumers are the best consumers.

Real estate agents, and other professionals in the industry, will receive an ongoing wealth of information that will help them serve their clients.

Thank you for signing up!

Filed Under: Down Payments Tagged With: Mortgage

Opinions, estimates, forecasts and other views contained in this page do not necessarily represent the views of Marimark Mortgage or its management and should not be construed as an offer to provide financing at the rates or terms mentioned. Due to market fluctuations, interest rates are subject to change at any time and without notice. Interest rates are also subject to credit and property approval. Although Marimark Mortgage attempts to provide reliable, useful information, it does not guarantee that the information is accurate, current or suitable for any particular purpose. Information from this page may be used with proper attribution.

Save with a Mortgage from Marimark

Whether you are buying a home or refinancing, you can save with a mortgage from Marimark Mortgage!

    Search

    Post Categories

    Testimonials

    Refinancing with Mary an absolute pleasure

     
    Refinancing with Mary has been an absolute pleasure. I have never been through the process before and she took the time to explain each step. She was prompt (had a rate locked in right away) and most importantly always answered the phone or emails almost immediately! The communication line alone made the refinancing process every bit worth it. Would recommend to anyone, and will be back for any future purchases! Bret Brennan, March 2021
    See More Reviews
    Marimark Mortgage LLC
    5327 Primrose Lake Circle
    Tampa, FL 33647-1328
    (813) 910-8020
    (866) 910-8020

    Accessibility
    Privacy Policy
    Terms of Service
    Sitemap

    Reviews

    Website Testimonials
    Google Reviews
    Zillow Reviews
    Trulia Reviews
    Facebook Reviews
    Yelp Reviews
    BBB A+ Rating

    FOLLOW US

    • ‎
    • ‎
    • ‎
    • ‎
    • ‎
    • ‎
    Marimark Mortgage is a BBB A+ Accredited Business

    Recent Posts

    • FHA Announced a 30-Basis Point Reduction to Annual Mortgage Insurance Premiums
    • How Can You Improve Your Credit Score?
    • Historical Mortgage Rates From The 1970s
    • What You Need to Know About Mortgage Forbearance
    • Top Tips to Save Money for a Down Payment

    © 2023 Marimark Mortgage, LLC All Rights Reserved. | Internet Marketing by Image Building Media. | RSS Feed

    Reviews / Recommendations: Google, Zillow, Trulia, LinkedIn, Facebook, Yelp, BBB

    Licensed in Florida by the Office of Financial Regulation, Mortgage Lender License #MLD77.
    Licensed in Virginia by the Virginia State Corporation Commission, License MC#4556.
    Licensed in Pennsylvania by the Department of Banking and Securities, License #40222.
    NMLS#248318 – www.nmlsconsumeraccess.org.