The requisite 20 percent down payment on a home may become a thing of the past and more American homeowners leverage low down payment options to boost their buying power. In fact, according to a new report from the National Association of Realtors, the average down payment among all buyers is just 12 percent and even less among younger home buyers.
Borrowers between 22 and 30 years old tend to put down just 6 percent and those utilizing FHA loans can purchase a home with as little as 3.5 percent down.
Low mortgage rates coupled with low down payment options can help first-time buyers transition from renter to homeowner.
Meanwhile, conforming no-point 30-year fixed mortgage rates are averaging 2.75 percent and 15-year rates are near 2.00 percent.
Do you have a question for Real Estate & Mortgage Analyst Mehran Aram? Submit your queries about a home purchase, refinance, or reverse mortgage via Aramco.biz, social media (#AramcoReport), or over the phone at (866) 381-8888 and your questions may be featured in an upcoming article.