By Elizabeth Zach, RCAC staff writer

FHA LoanAlthough most renters in California can’t afford to be homeowners, recent research illustrates that these renters could, in fact, buy a home if they had better financial knowledge.

According to a study by the California Association of Realtors (C.A.R.), “A lack of financial literacy is one of the biggest barriers preventing renters from becoming homeowners. Nearly three-fourths (73 percent) believe a down payment of at least 20 percent is required to purchase a home, and 72 percent are unaware of loan programs that require less than 20 percent down payment. Additionally, nearly seven in 10 (69 percent) would purchase a home if they could put down a lower down payment.”

The study states that these renters have misconceptions about home ownership and tend to err on the side of caution in terms of what they can realistically afford. Moreover, they are often unaware of potential loan sources.

“Prospective first-time buyers should be aware that there are many down payment assistance programs offered by local housing agencies and low down payment programs from the Federal Housing Administration, U.S. Dept. of Agriculture and the Veterans Administration,” said C.A.R. President Jaren Martin in the press release.

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