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Home Ownership

The 20% Down Payment Myth

Recently, I was sitting in on a first-time homebuyer webinar and was shocked at one of the statistics presented by the speaker. According to lpsos, a global market and opinion research specialty company, over 40% of the population believes a 20% down payment is required to purchase a new home. How can this be given that government-backed loan programs offered through the Federal Housing Administration (FHA), Fannie Mae, Freddie Mac, the Department of Veterans Affairs (VA) and the U.S. Department of Agriculture (USDA) allow borrowers to purchase a home with less than 20% down?