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Mortgage Market Update
Ken Graczak
Ken Graczak
Saturday, October 3, 2026
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You probably don't need 20% down |
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A Note From Ken Graczak
Fall Is Coming, We're Here If You Need Us
Most families are back into the school year routine by now, backpacks, schedules, the whole thing. Fall's right around the corner too, and it's usually when people start thinking more seriously about buying, refinancing, or just figuring out what makes sense for their situation.
If you're weighing a move, wondering about your rate, or just want a straight answer before you decide anything, reach out. No pressure, just good advice whenever you need it.
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The 20%-down rule keeps a lot of would-be buyers renting — and it's mostly a myth. Here's the real picture.
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National Mortgage Rates · October 1, 2026
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Conventional 30-Year
7.12%
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Source: Freddie Mac PMMS & Optimal Blue via FRED
Rates shown are national averages and are provided for informational purposes only. Actual rates vary based on credit profile, loan amount, and market conditions. Please contact us for a personalized rate quote.
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First-Time Buyers
The Down Payment Myth That Keeps Buyers Renting
One of the biggest reasons people keep renting is the belief that you need 20% down to buy a home. You don't. Plenty of loan programs let qualified buyers get in with 3% to 5% down, and some — like VA and USDA loans — allow zero down for those who qualify. There are also down payment assistance programs that provide grants or low-cost second loans to help cover the upfront cost. The catch is that these programs vary by area and have limited funding, so it pays to know your options early. If you've been waiting to save a huge lump sum, you might already be closer to ready than you think. A short conversation can map out exactly what you'd need and which programs fit your situation.
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Tip of the Week
Consider a 15-year mortgage if the payment fits your budget — you'll pay significantly less in total interest.
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Tips for Homeowners
How Lenders Verify Your Income
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1.
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W-2 employees typically provide two years of W-2s and 30 days of pay stubs. Lenders average your income over 24 months and use that figure — not your current salary if it's recently increased.
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2.
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Bonus, overtime, and commission income must have a 2-year history to be counted. If it's new, most lenders won't include it in qualifying income.
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3.
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Bank statements are reviewed for large deposits. Anything unusual must be explained and sourced — lenders are required to document where your funds come from.
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Have questions about how any of this affects your mortgage or home purchase? We're here to help — reach out to the Ken Graczak team any time and we'll walk you through your options. |
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8120 Penn Ave S. Suite 100C, Bloomington, MN 55431
612-324-8454 | https://kengraczak.com
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