Millennial buyers are flocking in droves to the new trend in loan financing: 3% down mortgages. This new pricing model is only two years old, yet according to HousingWire, a popular mortgage news source, it's here to stay. In fact, in their latest article, “Are 3% down mortgages the new normal?”, mortgage experts discuss why the flashy new option is actually a sound financial strategy.

Many buyers are under the impression that they need to put down 20% when buying a house, that its financially unstable not to do so. However, as HousingWire argues, putting down just 3% allows the buyer to hold onto that other 17% for important home improvements and maintenance.

“I would put 3% or 5% down and keep that extra 15% in your pocket for when you buy furniture, when your car breaks down or when something happens to your new house," reports a HousingWire expert. "Basically, putting 20% down is like digging a hole in the backyard and burying the money."

The article also points out that most financial problems don't actually stem from high loan debt.

"When people run into a financial problem, it isn’t because everyone has too high of a loan-to-value ratio. What happened was they couldn’t afford a payment and then they lost their job."

Investors shouldn't be afraid of the 3% program, it's actually oftentimes the smarter purchase. For more information on 3% down mortgages, talk to one of our home mortgage specialists today!