There are 37 million potential homebuyers in the U.S. who have the credit characteristics to qualify for a home and yet don’t have a mortgage, according to Freddie Mac, the agency dedicated to increasing affordable housing in the U.S. A lack of education on the variety of mortgage options available could be what’s holding them back.  

For example, many homebuyers are able to purchase a home with as little as 3% down, yet a common myth is that most loans require a 20% down payment. It’s a daunting difference – according to data from Freddie Mac, it would take most Americans between 2-4 years to save for a 3% down payment versus 14-24 years to save for a 20% down payment.

“If I were in the market today as a first-time homebuyer with the misconception that I need a 20% down payment, I may be pessimistic of making the dream of homeownership possible for me,” says Carmen Mercado, Senior Affordable Lending Manager for Freddie Mac. “However, if I knew that I could purchase a home with a 3% down payment, I would be more optimistic and excited about working with an agent on this journey.”

Below, Mercado shares her thoughts on how first-time homebuyers can overcome affordability barriers and why it’s important to increase opportunities for homeownership. 

Creating more hope for homeownership is one of the goals of a new training initiative by RE/MAX, created in partnership with Freddie Mac. Later this year RE/MAX will unveil a virtual program to help educate agents on low-down payment mortgages and other programs their clients may benefit from.

“RE/MAX was founded with the vision of achieving homeownership for all,” says Mike Reagan, RE/MAX Senior Vice President, Global Growth and Development. “The new initiative to educate agents on more affordable pathways to homeownership will empower agents to be a trusted guide for first-time homebuyers. This program will help us expand the benefits of homeownership to a larger group than ever before.”