If you’re getting ready to buy your first home, you’re likely focused on saving up for everything that purchase involves. One cost that’s likely top of mind is your down payment. But don’t let a common misconception about how much you need to save make the process harder than it could be.
Understand 20% Isn’t Always the Typical Down Payment. 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 specified by your loan type or lender, it’s typically not required to put 20% down. This means you could be closer to your homebuying dream than you realize. The median down payment hasn’t been over 20% since 2005. In fact, the median down payment today is only 14%. And it’s even lower for first-time homebuyers at just 6%.
Learn About Options That Can Help You Toward Your Goal.
If saving for a down payment still feels like a challenge, know that there is help available. I can show you options that could help you get closer to your down payment goal. There are over 2,000 homebuyer assistance programs in the U.S., and the majority are intended to help with down payments.
Plus, 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.
Bottom Line: Remember, a 20% down payment isn’t always required. If you want to purchase a home this year, let’s connect. Ben Keeney 203-313-0013