Oriana Suarez March 1, 2024
Buyers
Planning to purchase your first home can be exciting yet overwhelming, especially considering the down payment. Many believe that saving 20% of the home’s price is a prerequisite for buying a home. However, this is not always the case.
As The Mortgage Reports says:
“Although putting down 20% to avoid mortgage insurance is wise if affordable, it’s a myth that this is always necessary. In fact, most people opt for a much lower down payment.”
According to the National Association of Realtors (NAR), the median down payment has not exceeded 20% since 2005. Presently, it stands at 15% for all homebuyers and a mere 8% for first-time homebuyers.
Fortunately, there are numerous resources available to assist with down payments. Down Payment Resource reports over 2,000 homebuyer assistance programs across the U.S., many aimed at aiding with down payments.
Additionally, various loan options offer flexibility. For instance, FHA loans require down payments as low as 3.5%, while VA and USDA loans have no down payment requirements for eligible applicants.
Consulting with a loan officer or broker is key to uncovering available resources. They possess insights into local grants and loan programs that could benefit you.
It’s essential not to let the misconception of needing a 20% down payment deter you. Waiting until you've saved 20% may prove costly in the long run. According to U.S. Bank, delaying your purchase could result in higher home prices over time, eroding potential equity.
With home prices expected to appreciate, leveraging available resources now can help you build equity and avoid paying more in the future.
So, remember that you don't necessarily need a large down payment to make your homeownership aspirations come true. It's all about understanding your alternatives and choosing the best path for you. If you are ready to start your journey, feel free to contact us to discuss your home-buying aspirations.
We're not just here to help; we're here to be your partners throughout the process, providing individualized counsel and support you can rely on. Let's transform your goal of owning a home into an exciting journey full of possibilities!
Stay up to date on the latest real estate trends.
September 1, 2024
This blog offers practical advice on how to find a great local agent, including tips on checking their reputation, ensuring they have local market expertise, evaluatin… Read more
August 30, 2024
As the real estate landscape undergoes significant changes in 2024, it's crucial for professionals to stay informed and prepared.
August 16, 2024
Key considerations include the suitability of your property for rental, your readiness to manage tenants, and the costs associated with being a landlord. Explore these… Read more
August 2, 2024
In today's housing market, newly built homes may offer more budget-friendly options than many buyers expect. Contrary to common belief, the median sales price for newl… Read more
July 26, 2024
Starting August 17, 2024, MLS Participants must have a written agreement with buyers before home tours. This guide covers mandatory provisions and additional considera… Read more
July 15, 2024
Over the past year, homeowners have seen significant equity gains due to rising home prices. According to CoreLogic, the average homeowner's equity has increased by $2… Read more
July 1, 2024
Curious how the 2024 Presidential election might affect your home buying or selling plans? Discover the historical trends that show why the housing market remains resi… Read more
June 29, 2024
Help your clients make informed remodeling decisions with insights from Fixr's latest report. Discover the top home improvements for maximum ROI and current design tre… Read more
June 15, 2024
Discover how a real estate agent’s expertise can simplify these tasks, avoid common pitfalls, and help you achieve a successful sale. Read the full blog to understand … Read more
We strive to become your go-to Real Estate Advisors. Book a free consultation today and let’s get started with a buying or selling plan for your home customized to your unique timeline.