Most Consumers Say They Can’t Afford a Big Downpayment

Only 12% of consumers think they could easily save a 20% downpayment to buy a house, according to a new poll from the National Foundation for Credit Counseling.

About one in five said they’d need a mortgage that allowed a much lower downpayment, while 17% thought they’d have to borrow the downpayment money no matter how much is required.

Half the respondents said they’d never be able to save enough money for a downpayment. 

“Since prices for homes are at historic lows, the necessary downpayment represents a lower dollar amount than would typically be necessary. Nonetheless, consumers still do not feel capable of meeting the requirements,” said Gail Cunningham, spokesperson for the NFCC. 

The numbers suggest that consumers are reconciled to satisfying their housing needs through renting, even though in some markets it can be more affordable to buy a home than rent. While demand for rentals increased, so did the cost of renting.

Although renting has many advantages, it may not stimulate the economy as much as an uptick in the housing market would, as renters do not typically spend as much on home improvements, lawn equipment, appliances, or other areas which would lead to job growth, Cunningham said. 

Source: NFCC Financial Literacy Opinion Index

Read more: http://www.houselogic.com/news/articles/most-consumers-say-they-cant-afford-big-downpayment/#ixzz1O8lQGSMo

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About yournapleshome

Karen is originally from Cape May County, New Jersey but considers herself a Floridian due to the many years she has resided in this sunny state! She has two children, Kimberly and Jennifer. Kimberly graduated form the University of Florida in 2000 and resides in Naples with her husband and two children. She works in education . Jennifer graduated from the University of Florida in 2006 and resides with her husband in Raleigh, North Carolina. She currently works for the Sweatlock Team as a marketing executive. The Sweatlock Team provides top-notch personable and professional real estate services, custom marketing for listings, efficient and honest service, fair representation, and a team that is ready to work for you! All combined with great expertise and impeccable service- a combination that can't be beat! Our clients are clients for life.
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