Understanding Financial Basics for New Homeowners
Are you looking to buy your first home? You may have questions about how much money you’ll need to save for a down payment. Don’t let a misunderstanding lead you off track – start planning now and figure out the amount necessary for that all-important payment.
Understand 20% Isn’t Always the Typical Down Payment
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.”
If you’re ready to experience the joy of owning a home – your first one or a different property that better meets your needs – then let’s talk. At this stage, think about how emotions can turn any house into an extraordinary place to call ‘home’. Ready? Let’s connect!
Contrary to popular belief, it’s not always necessary to put 20% down on your loan. You may be closer to owning a home than you think! The National Association of Realtors (NAR) has reported that the median down payment hasn’t been over 20% since 2005; in fact, today the median stands at just 14%. There is an even lower rate for first-time buyers—just 6%, as demonstrated by this graph:
Learn About Options That Can Help You Toward Your
Take advantage of the various options that could help you get closer to your down payment objective. There are over 2,000 homebuyer assistance programs in the United States, most of which aim to assist with a down payment. Therefore, it is wise to consult with both an experienced real estate professional and reliable lender who can provide guidance on these potential solutions. The latest Homeownership Program Index from Down Payment Resource also offers additional beneficial information for buyers looking into this route.
FHA loans have incredibly low down payments, as little as 3.5%. Furthermore, VA and USDA loans don’t even require a down payment from certain applicants! If you’re looking to comprehend your choices better, it is essential that you research the available options thoroughly. Down Payment Resource has countless resources for those interested in learning more about these programs – be sure to check them out! Finally, reach out to a dependable lender and discover what’s feasible when it comes to purchasing your dream home.
Bottom Line
Don’t forget, a 20% down payment isn’t always necessary. If you’re determined to purchase your dream home in 2021, reach out and let’s connect so we can further discuss this! You must also make sure that you have an experienced lender with whom you are comfortable working so you can evaluate all of the available down payment options.
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