Leave a Message

Thank you for your message. We will be in touch with you shortly.

The Truth About Down Payments: What You Need to Know

Oriana Suarez March 1, 2024

Buyers

The Truth About Down Payments: What You Need to Know

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.

How Much do you Really Need to Buy a House? 

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.

Exploring Down Payment Assistance:

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.

Overcoming Misconceptions:

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.

Bottom Line:

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!

Unlock your FREE consultation

(908) 445-5339

 

Recent Blog Posts

Stay up to date on the latest real estate trends.

Best Places to Live in New Jersey for Families. Florostone Realty logo with family illustration.

Tips

Best places to live in New Jersey for families

August 20, 2025

Discover the best places to live in New Jersey for families, offering top schools, vibrant communities, and countless things to do with kids in NJ.

Florostone Realty graphic introducing a guide on investing in multi-family properties with renovated homes for sale in New Jersey.

Buyers

Investing in Multi-Family Properties: A Guide

August 14, 2025

Renovated Homes for Sale: Multi-Family Investment Guide

Header graphic featuring a sold house icon and text that reads "Understanding For Sale By Owner Contracts" with a subtitle encouraging homeowners to master the FSBO process, branded with the Florostone Realty logo.

Sellers

Understanding For Sale By Owner Contracts

August 6, 2025

Master the "For Sale By Owner" contract process and confidently sell your home independently

Minimalist cover image with home icon and the title “Finding the Best Real Estate Agent Near You in New Jersey”

Sellers

Finding the Best Real Estate Agent Near You in New Jersey

July 31, 2025

A Local’s Guide

Florostone Realty banner with key icon and headline: Thinking of selling your home in New Jersey without a realtor? Don’t skip this one step.

Sellers

Thinking of Selling Your Home in New Jersey Without a Realtor? Don’t Skip This One Step

July 23, 2025

The smartest first step for FSBO or traditional home sales in Union, Middlesex, Essex, and beyond

Cover slide for a 2025 guide titled "Selling Your Condo in Union County, NJ" by Florostone Realty

Sellers

Selling Your Condo in Union County, NJ

July 16, 2025

What You Need to Know in 2025

How to Sell Your Home in Union County, NJ: A Local Expert’s Guide – Florostone Realty

Sellers

How to Sell Your Home in Union County, NJ: A Local Expert’s Guide

July 8, 2025

Selling your home in Union County? Get expert pricing strategies, neighborhood insights, and a free CMA from Florostone Realty—your trusted local real estate team.

Florostone Realty graphic titled 'Why More Homeowners Are Listing in Union County in 2025' set against a soft backdrop of downtown Union County, New Jersey.

Buyers

Is Union County, NJ a Good Place to Sell Your Home in 2025?

July 1, 2025

What today's market conditions, pricing trends, and buyer demand mean for Union County homeowners looking to sell.

Hero image for Florostone Realty’s 2025 affordability guide, titled “How Much House Can You Afford in Different NJ Counties,” with a suburban New Jersey neighborhood in the background.

Buyers

How Much House Can You Afford in Different NJ Counties in 2025?

June 24, 2025

2025 Home Affordability Guide Across Union, Middlesex, Essex, and Bergen Counties

LET’S CONNECT

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.