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More people are buying homes by putting less money down

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DOWNPAYMENTS P

CARTERVILLE (WSIL) -- For some home-buyers saving a 20% down payment can be a roadblock to home-ownership.

Putting 20% down on a home purchase can be difficult. But Farmers State Bank Lender John Streuter says it's not as common anymore.

"Over the past decade, we have seen a higher number of people that are putting less money down," he said.

He says most put 5 to 10% down and some loan programs only require 3 percent. Streuter says recently he's seen a higher number of borrowers who don't put any money down.

"With the VA loan, they don't have to put any money down. So with VA finacing, they can get into a home financing 100% of the purchase price," he said.

House 2 Home Realtor Sarah Rakers says the clients she works with hardly ever put down 20 percent.

She recommends using the money you've saved up for projects in your home.

"There's so many other loan programs that are out there that don't require the 20% down. For instance first-time home-buyers probably don't have a lot in savings. What they do have in savings they probably want to keep there for what's going to happen when they move in," she said.

Streuter shared some tips for preparing to buy a new home.

"Make sure you have a steady job, make sure your're tied to this location for at least five years. Then come in and get pre-qualified with a lender and then start working with a real-estate agent to see what's out there on the market place," said Steuter.

Maya Skinner

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