Renter Misconceptions: Busting The 20% Down Payment Myth And Credit Score Requirements
Despite the growing number of low- and no-down-payment mortgage loans, it seems most American renters still think they need at least 20% down to buy a home.
Fortunately, renters’ assumptions are far from accurate. According to Mat Ishbia, president and CEO of United Wholesale Mortgage, the 20% down idea is just a myth — and there are plenty of options for buyers without a ton of savings on hand.
“There’s a big down payment myth that a lot of renters believe in because they’ve heard from their parents or other people that they need to put down 20% to buy a home,” Ishbia said. “That’s just not the case anymore, and it’s an outdated, old-school way of thinking.”