Buying your first home is an exciting journey, but the prospect of saving for a down payment can be overwhelming. The good news is that the 20% myth is just that – a myth. In this guide, we’ll break down the truth about down payments and provide valuable insights to help you on your path to homeownership.
The Reality of Down Payments
Contrary to popular belief, a 20% down payment is not always a necessity. In fact, it’s a common misconception that may be holding you back from realizing your dream of owning a home. According to The Mortgage Reports, most people opt for a much lower down payment, and the National Association of Realtors reveals that the median down payment for all homebuyers today is just 15%. First-time homebuyers, in particular, often make down payments as low as 8%.
Explore Available Resources
Discovering resources that can aid you in achieving your down payment goal is crucial. Down Payment Resource identifies over 2,000 homebuyer assistance programs in the U.S. Many of these programs are specifically designed to assist with down payments. Additionally, various loan options, such as FHA, VA, and USDA loans, offer down payment requirements as low as 3.5% or none at all for qualified applicants.
Consult with Professionals
To navigate the myriad of resources available, consult with your loan officer or broker. These professionals are well-versed in local grants and loan programs that may be tailored to your needs. Don’t let the 20% misconception deter you – leverage the expertise of these professionals to find the best options for your unique situation.
The Cost of Waiting
U.S. Bank warns against delaying your homeownership plans in pursuit of a 20% down payment. With home prices expected to appreciate over the next five years, waiting may cost you more in the long run. Instead of seeing it as an obstacle, consider using available resources to buy now and capitalize on future price growth, building equity in your home.
In conclusion, the truth about down payments is liberating – you don’t always need a 20% down payment to become a homeowner. If you’re ready to take the plunge, reach out to a trusted real estate professional today. At Onward, our experts are here to guide you through the entire home-buying process, ensuring you make informed decisions and turn your homeownership dreams into reality.