Unlock Your Homebuying Dreams with Down Payment Assistance
Saving for your first home? You may not need to put 20% down. The National Association of Realtors (NAR) notes that the median down payment hasn’t been over 20% since 2005. In fact, it’s usually only 14%, and 6% for first-time buyers. There are even loan types with lower down payments and assistance programs available.
“One of the biggest misconceptions among housing consumers is what the typical down payment is and what amount is needed to enter homeownership.”
And a recent Freddie Mac survey finds:
“. . . nearly a third of prospective homebuyers think they need a down payment of 20% or more to buy a home. This myth remains one of the largest perceived barriers to achieving homeownership.”
Good news! Unless your loan type or lender requires it, you don’t need 20% for a down payment. This could put you one step closer to owning your dream home. Explore what options are available today!
According to NAR, the median down payment has been less than 20% since 2005. Today, it is 14% for all homebuyers—and even lower at 6% for first-time buyers (see graph below).
What does this mean for you? It means you may not need to save as much as you originally thought.
Learn About Options That Can Help You Toward Your Goal
And it’s not just the down payment amount that confuses people. Misconceptions also exist about down payment assistance programs. Many think there is only help for first-time buyers, but repeat buyers have options too.
Down Payment Resource reveals there are over 2,000 homebuyer assistance programs in the U.S., and the majority aid with down payments. Additionally, they state:
“You don’t have to be a first-time buyer. Over 38% of all programs are for repeat homebuyers who have owned a home in the last 3 years.”
There are loan types with low down payments — FHA loans as low as 3.5%, VA and USDA loans with no down payment requirements for qualified applicants.
Get more information on down payment assistance programs from sites like Down Payment Resource, then consult a trusted lender to see what you qualify for. Start your homebuying journey today!
Bottom Line
Remember, you don’t always need a 20% down payment. If you’re looking to buy a home this year, let’s talk about your home-buying goals. Start the conversation today!