Business Insider, February 2, 2020: For years banks have asked for 20% down on a mortgage, but cash-strapped Americans are buying homes with less
Putting 20% down on a home purchase is daunting, and rightfully so.
For many young Americans struggling with student-loan payments, higher rent costs and relatively stagnant salaries, saving a fifth of a home’s value to get a mortgage simply isn’t on the radar.
Would-be homebuyers are finding it can take years to save a full 20% down payment, especially for anyone living near a big city, where real-estate prices are soaring. According to data from the rental-listing site HotPads, a typical renter in Los Angeles will need nine years and 10 months to save for a full 20% down payment for the median home price of $717,000, assuming they’re saving a generous 20% of their income.
