Saving for a Down Payment? Here’s What You Should Know.

October 18, 2022

Saving for a Down Payment? Here’s What You Should Know.
As you set out to buy a home, saving for a down payment is likely top of mind. But you may still have questions about the process, including how much to save and where to start.
 
If that sounds like you, your down payment could be more in reach than you originally thought. Here’s why.
 

The 20% Down Payment Myth

 
If you believe you have to put 20% down on a home, you may have based your goal on a common misconception. Freddie Mac explains:
 
“. . . 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.”
Unless it’s specified by your loan type or lender, it’s typically not required to put 20% down. According to the latest Profile of Home Buyers and Sellers from the National Association of Realtors (NAR), the median down payment hasn’t been over 20% since 2005. There are even loan types, like FHA loans, with down payments as low as 3.5%, as well as options like VA loans and USDA loans with no down payment requirements for qualified applicants.
 
This is good news for you because it means you could be closer to your homebuying dream than you realize. For more information, turn to a trusted lender.
 

Down Payment Assistance Programs Can Be a Game Changer

 
A professional will be able to show you other options that could help you get closer to your down payment goal. According to latest Homeownership Program Index from downpaymentresource.com, there are over 2,000 homebuyer assistance programs in the U.S., and the majority are intended to help with down payments.
 
A recent article explains why programs like these are helpful:
 
These resources can immediately build your home buying power and help you take action sooner than you thought possible.”
And if you’re wondering if you have to be a first-time buyer to qualify for these programs, that’s not always the case. According to an article from downpaymentresource.com:
 
“It is a common misconception that homebuyer assistance is only available to first-time homebuyers, however, 38% of homebuyer assistance programs in Q1 2022 did not have a first-time homebuyer requirement.
There are also location and profession-based programs you could qualify for as well.
 

Bottom Line

 
Saving for your down payment is an important first step on your homebuying journey. Let’s connect today and make sure you have a trusted lender to help explore your options.
 
The information contained, and the opinions expressed, in this article are not intended to be construed as investment advice. Center Real Estate, DBA does not guarantee or warrant the accuracy or completeness of the information or opinions contained herein. Nothing herein should be construed as investment advice. You should always conduct your own research and due diligence and obtain professional advice before making any investment decision. Center Real Estate, DBA will not be liable for any loss or damage caused by your reliance on the information or opinions contained here.

Recent Blog Posts

Stay up to date on the latest trends in real estate.

Is Wall Street Buying Up All the Homes in America?

November 27, 2023

f you’re thinking about buying a home, you may find yourself interested in the latest real estate headlines so you can have a pulse on all of the things that could imp… Read more

How VA Loans Can Help Make Homeownership Dreams Come True

November 10, 2023

For more than 79 years, Veterans Affairs (VA) home loans have helped millions of veterans buy their own homes. If you or someone you care about has served in the milit… Read more

Reasons To Sell Your House Before the New Year

November 8, 2023

As the year winds down, you may have decided it's time to make a move and put your house on the market. But should you sell now or wait until January? While it may be … Read more

A Real Estate Agent Helps Take the Fear Out of the Market

October 31, 2023

Do negative headlines and talk on social media have you feeling worried about the housing market? Maybe you’ve even seen or heard something lately that scares you and … Read more

Are Higher Mortgage Rates Here To Stay?

October 16, 2023

Mortgage rates have been back on the rise recently and that’s getting a lot of attention from the press. If you’ve been following the headlines, you may have even seen… Read more

Prepare for Cozy, Budget-Friendly Living Spaces

September 11, 2023

Have you been trying to buy a home, but higher mortgage rates and home prices are limiting your options? If so, here’s some good news – based on what Ali Wolf, Chief E… Read more

Let's Talk

You’ve got questions and we can’t wait to answer them.