Planning to buy a home is a very exciting time in a person’s life. Along with this big purchase, can come a huge downpayment. A downpayment can be one of the greatest expenses you will need to save for. The standard is usually 20% of the purchase price of the home but not all loans require such a big amount.
“One of the biggest misconceptions among housing consumers is what the typical down payment is and what amount is needed to enter homeownership,” says the National Association of Realtors (NAR).
Freddie Mac report, “. . . 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.”
According to the National Association of Realtors, the median downpayment is currently 14% of the purchase price of the home. If you are a first-time homebuyer, it can also be even lower. A first-time homebuyer can put down as little as 6% of the home’s purchase price.
That brings us to the fact that you do not have to be a first-time homebuyer to take advantage of payment assistance programs. Down Payment Resource reports there are over 2,000 homebuyer assistance programs in the U.S., and the majority are intended to help with down payments. “You don’t have to be a first-time buyer. Over 38% of all programs are for repeat homebuyers who have owned a home in the last 3 years,” explains Down Payment Resource.
Remember to get the best deal and the lowest downpayment options, speak to your Realtor who can put you in touch with a lender. Your Realtor will help you with the homebuying process from start to finish.
