you set out on your home buying journey, you likely have a plan in place, and
you’re working on saving for your purchase. But do you know how much you
actually need for your down payment?
you think you have to put 20% down, you may have set your goal based on a
common misconception. Freddie Macsays:
“The most damaging down
payment myth—since it stops the homebuying process before it can start—is the
belief that 20% is necessary.”
Unless specified by your loan type or lender, it’s
typically not required to put 20% down. According to the Profile of Home
Buyers and Sellers from
the National Association
of Realtors (NAR), the median down payment hasn’t been over
20% since 2005. It may sound surprising, but today, that number is only 13%.
And it’s even lower for first-time homebuyers, whose
median down payment is only 7%(see
What Does This Mean for You?
a down payment of 20% or more does have benefits, the typical buyer is
putting far less down. That’s good news for you because it means you could be
closer to your homebuying
dream than you realize.
you’re interested in learning more about low down payment options, there are
several places to go. There are programs for qualified buyers with down
payments as low as 3.5%. There are also options like FHA 600 loans, VA 620
loans, Conventional 620, and USDA 640 loans with no down payment requirements
for qualified applicants.
understand your options, you need to do your homework. If you’re interested in
learning more about down payment assistance programs, information is available
through sites like downpaymentresource.com.
Be sure to also work with a real estate advisor from
the start to learn what you may qualify for in the homebuying process.
a 20% down payment isn’t always required. If you want to purchase a home this
year, let’s connect to start the conversation and explore your down payment
options. Contact me at (904) 274-1692 to get started.