| Still, for many Americans, owning a
home continues to remain just slightly out of reach. For more and more
families, saving the money for a down payment is the biggest obstacle to
homeownership. Many people mistakenly believe that you have to come up
with a down payment equal to 20% of the price of a home.
Traditionally, lenders have required that home
buyers be able to make a down payment of at least 20% of a home's purchase
price to get a home loan or mortgage. However, mortgage lenders will grant
home loans to qualifying home buyers with a down payment of as little as
5% of the purchase price, if the mortgage is insured.
In fact, home loans with down payments of less
than 20% are increasingly popular. They are called "low down payment
mortgages." This is good news for the millions of home buyers who are
finding it difficult to save a large down payment, especially for their
first house.
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