Tag Archives: Down Payment

While saving for a down payment remains a significant obstacle for millennials who hope to achieve homeownership, a recent survey indicates that a majority of them ARE saving.

For most Americans, the largest obstacle to achieving the American Dream of homeownership—particularly for first-time buyers—is still saving for a down payment.

Wells Fargo is launching a new low-down payment mortgage program for first-time and lower-income borrowers that could be the bank’s way out from under the shadow of the Federal Housing Administration.

According to an announcement from the bank on Wednesday, Chase is simplifying its jumbo loan product offerings by lowering FICO and down payment requirements on loans as much as $3 million.

By lowering the down payment down to 3 percent, leaders from the GSEs and the Federal Housing Finance Administration (FHFA) hope to increase homeownership and particularly household formation by offering loans to those who can afford mortgages but lack resources to make a 20 percent down payment plus closing costs.

In an analysis of housing affordability in 512 U.S. counties, RealtyTrac discovered that lowering the down payment for a conventional mortgage loan from 20 percent to 3 percent would still not translate to housing affordability for a majority of those with non-mortgage debt such as student loans or a car payment.

According to a consumer survey conducted by Trulia, 60 percent of American adults age 18–34 say a lack of savings, poor credit, and severe debt stand between them and homeownership. As a result, 50 percent would have to ask for help from their parents or grandparents to put together enough money to clear the initial hurdle of making a down payment.