Think you need a 20 percent down payment to buy a home? Think again.
Many people believe they need a 20 percent down payment to buy a home.
But, it’s possible to purchase even a brand-new house with as little as 3.5 percent down — or even nothing down at all.
A June 2014 survey of 2,017 U.S. adults, conducted online for Wells Fargo, found that 44 percent held the mistaken belief that a 20 percent down payment was required to buy a home, even though many types of loans allow much smaller down payments, says Ron Sozio, divisional builder sales manager at Wells Fargo in Somerville, N.J.
“The reality is that most of the time you don’t need 20 percent,” Sozio says.