Blog Layout

Enjoy Our Blog

March 11, 2024
If you’re trying to buy a home and are having a hard time finding one you can afford, it may be time to consider a fixer-upper.
March 8, 2024
Wondering if now’s a good time to sell your house?
March 7, 2024
If you’re taking a look at your expenses as you retire, saving money where you can has a lot of appeal.
March 6, 2024
If you’re gearing up to sell your house this spring, one of the early conversations you’ll have with your agent is about how much access you want to give buyers.
March 5, 2024
There’s been a lot of recession talk over the past couple of years.
March 4, 2024
If you want to buy a home, you should know your credit score is a critical piece of the puzzle when it comes to qualifying for a mortgage.
March 1, 2024
If you’re looking to buy a home in 2024, getting pre-approved is a key piece of the puzzle. Mortgage pre-approval means a lender checks your finances and decides how much you’re qualified to borrow.
February 29, 2024
If you’re holding out hope that the housing market is going to crash and bring home prices back down, here’s a look at what the data shows.
February 28, 2024
No matter how you slice it, buying or selling a home is a big decision.
February 27, 2024
Wondering if it still makes sense to sell your house right now?
February 23, 2024
If you’re looking to buy a home, it’s important to know how mortgage rates impact what you can afford and how much you’ll pay each month.
February 22, 2024
Over the past few months, experts have revised their 2024 home price forecasts based on the latest data and market signals, and they’re even more confident prices will rise, not fall.
February 21, 2024
There’s a lot of confusion in the market about what’s happening with day-to-day movement in mortgage rates right now.
February 20, 2024
Buying your first home is a big, exciting step and a major milestone that has the power to improve your life.
February 19, 2024
If you're thinking of selling your house this spring, now is the perfect time to start getting it ready.
February 16, 2024
If you’re trying to buy a home but are having a hard time finding something in your budget, here’s something that can help: consider condos and townhomes.
February 15, 2024
Based on what you’re hearing in the news about home prices, you may be worried they’re falling.
February 14, 2024
Chances are at some point in your life you’ve heard the phrase, home is where the heart is.
February 13, 2024
Homeownership is a major part of the American Dream.
February 12, 2024
Are you feeling a bit unsure about what’s really happening with mortgage rates?
February 9, 2024
In today's housing market, you can still come out on top if you have the right team and plan.
February 8, 2024
Are you on the fence about selling your house?
February 7, 2024
On the road to becoming a homeowner? If so, you may have heard the term pre-approval get tossed around.
February 6, 2024
Have you been thinking about selling your house?
February 5, 2024
Finding the right home is one of the biggest challenges for potential buyers today.

The Truth About Down Payments

February 26, 2024
The Truth About Down Payments Simplifying The Market

If you’re planning to buy your first home, saving up for all the costs involved can feel daunting, especially when it comes to the down payment. That might be because you’ve heard you need to save 20% of the home’s price to put down. Well, that isn’t necessarily the case.

Unless specified by your loan type or lender, it’s typically not required to put 20% down. That means you could be closer to your homebuying dream than you realize.

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 hasn’t been over 20% since 2005. In fact, for all homebuyers today it’s only 15%. And it’s even lower for first-time homebuyers at just 8% ( see graph below ):


The big takeaway? You may not need to save as much as you originally thought.

Learn About Resources That Can Help You Toward Your Goal

According to Down Payment Resource , there are also over 2,000 homebuyer assistance programs in the U.S., and many of them are intended to help with down payments.

Plus, there are loan options that can help too. For example, FHA loans offer down payments as low as 3.5% , while VA and USDA loans have no down payment requirements for qualified applicants.

With so many resources available to help with your down payment, the best way to find what you qualify for is by consulting with your loan officer or broker. They know about local grants and loan programs that may help you out.

Don’t let the misconception that you have to have 20% saved up hold you back. If you’re ready to become a homeowner, lean on the professionals to find resources that can help you make your dreams a reality. If you put your plans on hold until you’ve saved up 20%, it may actually cost you in the long run. According to U.S. Bank :

“. . . there are plenty of reasons why it might not be possible. For some, waiting to save up 20% for a down payment may “cost” too much time. While you’re saving for your down payment and paying rent, the price of your future home may go up.”

Home prices are expected to keep appreciating over the next 5 years – meaning your future home will likely go up in price the longer you wait. If you’re able to use these resources to buy now, that future price growth will help you build equity, rather than cost you more.

Bottom Line

Keep in mind that you don't always need a 20% down payment to buy a home. If you're looking to make a move this year, reach out to a trusted real estate professional to start the conversation about your homebuying goals.

March 11, 2024
If you’re trying to buy a home and are having a hard time finding one you can afford, it may be time to consider a fixer-upper.
March 8, 2024
Wondering if now’s a good time to sell your house?
March 7, 2024
If you’re taking a look at your expenses as you retire, saving money where you can has a lot of appeal.
March 6, 2024
If you’re gearing up to sell your house this spring, one of the early conversations you’ll have with your agent is about how much access you want to give buyers.
March 5, 2024
There’s been a lot of recession talk over the past couple of years.
March 4, 2024
If you want to buy a home, you should know your credit score is a critical piece of the puzzle when it comes to qualifying for a mortgage.
March 1, 2024
If you’re looking to buy a home in 2024, getting pre-approved is a key piece of the puzzle. Mortgage pre-approval means a lender checks your finances and decides how much you’re qualified to borrow.
February 29, 2024
If you’re holding out hope that the housing market is going to crash and bring home prices back down, here’s a look at what the data shows.
February 28, 2024
No matter how you slice it, buying or selling a home is a big decision.
February 27, 2024
Wondering if it still makes sense to sell your house right now?
Show More

Enjoy Our Blog

March 11, 2024
If you’re trying to buy a home and are having a hard time finding one you can afford, it may be time to consider a fixer-upper.
March 8, 2024
Wondering if now’s a good time to sell your house?
March 7, 2024
If you’re taking a look at your expenses as you retire, saving money where you can has a lot of appeal.
March 6, 2024
If you’re gearing up to sell your house this spring, one of the early conversations you’ll have with your agent is about how much access you want to give buyers.
March 5, 2024
There’s been a lot of recession talk over the past couple of years.
March 4, 2024
If you want to buy a home, you should know your credit score is a critical piece of the puzzle when it comes to qualifying for a mortgage.
March 1, 2024
If you’re looking to buy a home in 2024, getting pre-approved is a key piece of the puzzle. Mortgage pre-approval means a lender checks your finances and decides how much you’re qualified to borrow.
February 29, 2024
If you’re holding out hope that the housing market is going to crash and bring home prices back down, here’s a look at what the data shows.
February 28, 2024
No matter how you slice it, buying or selling a home is a big decision.
February 27, 2024
Wondering if it still makes sense to sell your house right now?
More Posts
Share by: