According to a new study, more than half of Americans who have or plan to purchase a home admit they’re concerned about the ability to afford a home in the current market. The study is based on a survey of 1,000 consumers and was released by national online lender Laurel Road. One of the biggest barriers to affordability, respondents said, is the down payment.
Nearly half—or 46 percent—of Americans say they are unfamiliar with alternative down payment options, according to the survey. Nearly three in five respondents—or 58 percent—plan to put down a traditional 20 percent down payment. Some may feel like they have no other choice. However, the median down payment for first-time buyers in 2017 was 6 percent of the total home price, according to the National Association of REALTORS®.
One-third of respondents expressed concern that they could not confidently afford a 20 percent down payment. Among those with student loan debt, even more consumers said they do not feel confident.
“Purchasing a home is a life-changing decision, yet despite the range of resources, people often aren’t aware of the personalized options available to fit their specific situation,” says Alyssa Schaefer, chief marketing officer of Laurel Road.
Source: Laurel Road Bank
