A 20% down payment usually isn’t required to finance a home purchase, and most buyers who finance a home put down less.
But the 20% down payment isn’t dead yet. In fact, a growing share of buyers are making down payments of at least 20% to compete in today’s sizzling market.
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Competitive market prompts higher down payments
Realtors reported that 48% of their home buyer clients made down payments of at least 20% in the first quarter of 2021, up from 46% in all of 2020 and 40% in all of 2011, according to the National Association of Realtors’ Confidence Index Survey. Among first-time buyers, almost 28% put down at least 20% in the first quarter, up from almost 26% in 2020 and about 23% in 2011.
A larger down payment strengthens your offer because it assures the seller that you’re on solid financial ground and your financing is likely…
This article was written by Hal M. Bundrick, CFP® and originally published on www.nerdwallet.com