If you’re thinking of buying a home today, you already know that the number of homes available for sale is low. But what does that really mean for you? As a buyer, low housing
How Much Do You Need for Your Down Payment?
Dated: January 7 2022
Views: 75
As you set out on your homebuying journey, you likely have a plan in place, and you’re working on saving for your purchase. But do you know how much you actually need for your down payment?
If you think you have to put 20% down, you may have set your goal based on a common misconception. Freddie Mac says:
“The most damaging down payment myth—since it stops the homebuying process before it can start—is the belief that 20% is necessary.”
Unless specified by your loan type or lender, it’s typically not required to put 20% down. According to the Profile of Home Buyers and Sellers from the National Association of Realtors (NAR), the median down payment hasn’t been over 20% since 2005. It may sound surprising, but today, that number is only 13%. And it’s even lower for first-time homebuyers, whose median down payment is only 7% (see graph below):
What Does This Mean for You?
While a down payment of 20% or more does have benefits, the typical buyer is putting far less down. That’s good news for you because it means you could be closer to your homebuying dream than you realize.
If you’re interested in learning more about low down payment options, there are several places to go. There are programs for qualified buyers with down payments as low as 3.5%. There are also options like VA loans and USDA loans with no down payment requirements for qualified applicants.
To understand your options, you need to do your homework. If you’re interested in learning more about down payment assistance programs, information is available through sites like downpaymentresource.com. Be sure to also work with a real estate advisor from the start to learn what you may qualify for in the homebuying process.
Bottom Line
Remember: a 20% down payment isn’t always required. If you want to purchase a home this year, let’s connect to start the conversation and explore your down payment options.
Julie Maxwell
Julie Maxwell’s experience in real estate started with HOA management. Over the years, she worked with homeowners, HOA Boards, vendors and developers to help create and foster strong, vibrant commun....
Latest Blog Posts
Some HighlightsEven in today’s sellers’ market, there are still ways for buyers to win big.Build a team of trusted professionals and make strategic plays as you budget and
As you set out on your homebuying journey, you likely have a plan in place, and you’re working on saving for your purchase. But do you know how much you actually need for your down payment?If
Some HighlightsWhen it comes to buying a home, there are a number of key milestones along the way.The process includes everything from building your team and understanding your finances to&
The content relating to real estate for sale in this Web site comes in part from the Internet Data eXchange (IDX) program of METROLIST, INC., DBA RECOLORADO©. Real estate listings held by brokers other than Welcome to Hub Real Estatename are marked with the IDX Logo. This information is being provided for the consumers' personal, non-commercial use and may not be used for any other purpose. All information subject to change and should be independently verified. May 22, 2022 3:16 AM UTCd
Information deemed reliable but not guaranteed by the MLS. © 2022 Information and Real Estate Services, LLC.
Information source: Information and Real Estate Services, LLC. Provided for limited non-commercial use only under IRES Rules. © Copyright IRES.
The information being provided is for the consumers personal, non-commercial use and may not be used for any purpose other than to identify prospective properties consumer may be interested in purchasing.
The IRES, LLC Data on this
© 2022 Cheyenne MLS. Information deemed reliable but not guaranteed accurate by the Cheyenne MLS. This information provided exclusively for consumers' personal, non-commercial use and may not be used for any purpose other than to identify prospective properties consumers may be interested in purchasing. Real estate listings held by brokerage firms other than Welcome to Hub Real Estate are marked with the IDX logo and includes the name of the listing brokers. Data last updated: May 22, 2022 3:16
