If you're in the market for your first home, you're likely thinking about all the costs involved in such a significant purchase. One major expense that may cause you some worry is the down payment. However, it's important to know that you don't necessarily need to put down 20%. In fact, many homebuyers hold misconceptions about how much they need to save to become homeowners. According to the National Association of Realtors (NAR), understanding the truth about down payments can help protect your finances and make homeownership more accessible.
According to a recent Freddie Mac survey, this myth is one of the biggest obstacles standing in the way of achieving homeownership. Don't let false assumptions hold you back from your dream of owning a home!
National Association of Realtors (NAR) also reports the average down payment for all homebuyers is only 14%, and for first-time homebuyers, it's 6%. If you're worried about having to save up an impossibly large amount, don't be - your homebuying dream could be closer than you think. Check out the chart below for more insight to the averages we are seeing nationally.
Good news! This means that you might not have to save as much money as you initially planned.
Options That Can Help You Toward Your Goal
Did you know that there are over 2,000 homebuyer assistance programs in the U.S. designed to help with down payments? It's a common misconception that these programs are only available for first-time homebuyers. In fact, over 38% of all programs are for repeat homebuyers who have owned a home in the last 3 years. Options like FHA loans with down payments as low as 3.5% and VA loans and USDA loans with no down payment requirements for qualified applicants are available. To learn more about down payment assistance programs, check out Down Payment Resource (link below) and partner with a trusted lender to discover what you qualify for on your homebuying journey.
Remember, a 20% down payment isn't always required, so reach out to Scott and the Smolen Team today to start the conversation about your homebuying goals!
