I read this morning the results of a survey conducted by the National Association of Realtors that 87% of non-homeowners believe they need 10% down or more to purchase a home. This is entirely inaccurate and I am very surprised that so many people do not know better. So for your "good deed of the day", spread the word that the minimum down payment for purchasing a home is normally around 3%. Sure, there are Jumbo loans and other circumstances that require a larger than 3% down payment. However, with the majority of loans 3% is sufficient, and in some cases a 1% down payment is available (and Veterans loans allow 0% down payment)!
The monthly payment is higher when you put less down, but the barrier to entry for most home buyers is the down payment - not monthly payment. Once you are in the game, you are normally in it to stay as your home equity will move with the market (up or down).
As always, I am excited to discuss these topics and can be found at www.FirstAmericanMortgage.net
Thank you very much!