Saving for a down payment is probably at the top of your mind when you start the home-buying process. However, you can still have concerns regarding the procedure, such as how much to save and how to get started.
If you identify with that, your down payment might be more affordable than you initially imagined. This is why.
Myths About 20% Down Payment
You might have set your target based on a widespread misunderstanding if you think you need to put 20% down when buying a house. Freddie Mac clarifies:
"Nearly a third of prospective buyers believe that a down payment of 20% or more is required in order to purchase a property. One of the primary perceived obstacles to becoming a homeowner is still this fallacy.
It's normally not necessary to put 20% down unless your loan type or lender specifically states otherwise. The median down payment hasn't exceeded 20% since 2005, according to the National Association of Realtors' (NAR) most recent Profile of Home Buyers and Sellers. There are even financing options like FHA loans that just require 3.5% down payments, as well as choices like VA loans and USDA loans that don't require any down payments at all for approved candidates.
This is wonderful news for you since it suggests that you might be closer than you think to realizing your ambition of owning a home. Consult a reliable lender for further details.
Programs for Down Payment Assistance Can Change the Game
Another method that can enable you to come closer to your down payment target can be demonstrated to you by an expert. Over 2,000 homebuyer assistance programs exist in the United States, the bulk of which are designed to assist with down payments, according to the most recent Homeownership Program Index from downpaymentresource.com.
An article from recently illustrates why these kinds of initiatives are beneficial:
"These resources can help you take action sooner than you ever thought possible and quickly increase your home buying power."
You don't always have to be a first-time buyer to be eligible for these programs, in case you were wondering. According to a downpaymentresource.com article:
Despite the widespread belief that homebuyer assistance is solely offered to first-time purchasers, 38% of programs in Q1 2022 did not have this condition.
You may also be eligible for programs that are dependent on your geographic location and occupation.
To sum up
The first stage in the home-buying process is to save for your down payment. Let's get in touch right away to make sure you have a reliable lender that can help you explore your alternatives.