What is a strategy for homebuyers who do not have a 20% down payment saved?

Looking into low down payment mortgage products is a practical strategy for homebuyers who may not have the means to provide a 20% down payment. These types of mortgage options allow buyers to purchase a home with significantly less upfront cost. For example, many lenders offer programs that require as little as 3% to 5% down, making homeownership accessible to a broader range of buyers, including first-time homeowners who may be saving for other costs associated with buying a home.

Furthermore, these low down payment options often come with favorable terms and support, such as assistance with closing costs or reduced mortgage insurance premiums, which can ease the overall financial burden. By opting for a low down payment mortgage, buyers can enter the housing market sooner rather than later, allowing them to take advantage of current market conditions and start building equity in a home.

This approach empowers buyers and acknowledges the reality that not everyone can save a full 20% down payment right away, providing an opportunity for many to pursue home ownership earlier in their financial journeys.