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How Much of a Down Payment is Needed for Buyers Seeking Homes for Sale in Wayne?

Buyers Seeking Homes for Sale in WayneMany first-time buyers seeking homes for sale in Wayne and other Main Line communities worry that the necessary down-payment will be too much to allow them to qualify for a mortgage. However, you may be surprised to learn that 61% of first time home buyers make less than a 6% down payment, according to National Association of Realtors’® latest Realtors® Confidence Index.

The average down payment in 2017 for all buyers was 10%. For first time buyers, the average was even lower at 6%. The fact is that buyers can purchase a home with even less than a 6% down payment, but they may face special additional considerations.

According to the National Association of Realtors®, in order to make mortgages more accessible to first time buyers, Fannie Mae and Freddie Mac began to accept applications with 3% down payments in 2015. This type of arrangement often means that the buyers have to pay PMI (private mortgage insurance) or higher interest rates, but the benefit of getting into a home of their own for the first time is more than worth the trade-off for many buyers. This feeling is especially true when considering that according to a 2017 study by GoBankingRates, only 43% of Americans have $10,000 or more in savings.

Buyers seeking homes for sale in Wayne or the Philadelphia area who are in the lower earning end of that category would be unable to pay a 20% down payment on a $300,000 home.  With their income and the money these buyers probably save vs. renting, they could possibly afford a lower down payment and the extra required each month for PMI and interest until they can get their LTV (loan to value) ratio below 80%.

Other Costs to Consider

Having a lower down payment could also help first time buyers manage other costs that are associated with home buying, such as:

  • Closing costs, which sometimes surprise first time buyers at 3-6% of the home’s price.
  • Moving costs, which can include truck rental, professional movers and interim housing if the move occurs after the end of a rental contract.
  • New furnishings or appliances may be needed for the new living space.
  • Utility hookups, since gas, water or cable will need to be established and often require deposits.

The bottom line is that first time home buyers may be in a better position than they think to purchase a new home. An experienced real estate agent can give guidance about the possibilities.

Sage Helps Buyers Seeking Homes for Sale in Wayne, Villanova and Other Main Line Area Communities

Buying a home can be complicated, with lots of paperwork, and every transaction has different factors that may come into play. Utilizing the services of a Main Line Realtor® will allow those buyers seeking homes for sale in Wayne to be informed of all the possible pitfalls. A real estate agent will also be able to shorten the time for home searches and give experienced advice for offers and negotiations. If you are a buyer seeking homes for sale in Wayne, or any of the other desirable Main Line neighborhoods, contact Sage Realty today for more information.

 

 

Featured Testimonial

I moved to PA from Washington State and learned that realty is local. There were things that I thought I knew about buying a house previously but boy was I wrong. Linda was very patient with me but also did not hold back when she saw potential problems, and always made sure I had all the information I needed before making a decision and didn’t belittle concerns to just get a sale. Above all else, and this was the most important thing to me, Linda has a high ethical standard, is very transparent in her approach and is someone I trusted making one of the biggest decisions of my life. – A. Lindsay (Courtesy of Google)

 

Hear From Our Clients

  • "We were so pleased that a co-worker recommended someone in the area that she trusted. Boy, did we strike gold on all counts. You are amazing!"
  • "Instead of trying to take advantage of conflicts of interest, she puts the client's interests first."
  • "Linda is a hardworking, proactive and knowledgeable realtor. Throughout the process of finding and buying our new home, she was always responsive and kept us up to date on every detail."
  • "Linda and the group at Sage are the right fit. You won’t find more knowledgeable, prepared and professional agents."
  • "Linda and Tracey really know the Main Line area."
  • "Throughout the entire process we never doubted that she always had our best interests in mind. We wouldn’t consider anyone else when buying a home on the Main Line."
  • "From start to finish, Linda brought to bear a most helpful combination of experience, knowledge, attention and integrity on a somewhat complicated transaction. There was never any doubt that she represented our interests."
  • "Her knowledge of the area helped us quickly narrow our search and ultimately scored us an amazing home in an incredible neighborhood."
  • "It is hard to trust when you are not sure of the rules of the game. Working with Linda made us feel like we were family. Linda took her time to relay and explain everything in detail."
  • "Linda’s honesty and real estate savviness made for a wonderful home buying experience!"

Read more about what our clients have to say

Hear from our Clients

  • "We were so pleased that a co-worker recommended someone in the area that she trusted. Boy, did we strike gold on all counts. You are amazing!"
  • "Instead of trying to take advantage of conflicts of interest, she puts the client's interests first."
  • "Linda is a hardworking, proactive and knowledgeable realtor. Throughout the process of finding and buying our new home, she was always responsive and kept us up to date on every detail."
  • "Linda and the group at Sage are the right fit. You won’t find more knowledgeable, prepared and professional agents."
  • "Linda and Tracey really know the Main Line area."
  • "Throughout the entire process we never doubted that she always had our best interests in mind. We wouldn’t consider anyone else when buying a home on the Main Line."
  • "From start to finish, Linda brought to bear a most helpful combination of experience, knowledge, attention and integrity on a somewhat complicated transaction. There was never any doubt that she represented our interests."
  • "Her knowledge of the area helped us quickly narrow our search and ultimately scored us an amazing home in an incredible neighborhood."
  • "It is hard to trust when you are not sure of the rules of the game. Working with Linda made us feel like we were family. Linda took her time to relay and explain everything in detail."
  • "Linda’s honesty and real estate savviness made for a wonderful home buying experience!"

Read more about what our clients have to say

Sage Buyer Tips

Use Sage Buyer Tips to research the Main Line and stay up to date on real estate news. This online destination is chock full of resources for buyers and sellers: you can see our Main Line communities or explore Sage favorite places. Browse properties here and search other Main Line real estate. With Sage’s advice and experience, first-time buyers and those looking to upgrade can find homes best suited to their needs.