Home Loan Programs Let Buyers Put Less Down

Real estate is missing an opportunity to reach qualified buyers
Low down payments make a comeback

Home Loan Programs Let Buyers Put Less Down

FEB. 6, 2015
By Tara Siegel Bernard

2-10-15One of the biggest hurdles to buying a home is accumulating the pile of cash for a down payment. By some estimates, it could take two decades to come up with a respectable 10 percent.With the introduction of several new programs, prospective home buyers with little money to put down now have more options to consider. But they will need to sort through the many rules and fine print to find the most cost-effective loan, and they may ultimately come to the realization that it actually pays to wait and save a bit more.
Both Fannie Mae and Freddie Mac recently introduced similar programs aimed at middle-income borrowers that permit down payments as low as 3 percent. And the Federal Housing Administration, which insures loans and generally requires down payments of at least 3.5 percent, recently lowered one of its fees, making the program a bit more competitive with the two new options.

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