Here’s what you need to know about putting 20% down for a home purchase.
If you’re in the process of saving up for your first home, you’ve likely heard the rule that you should have a 20% down payment. However, that’s not always the case unless specifically required by your lender. Contrary to popular belief, you don’t always need to put 20% down. In fact, the median down payment in today’s market is less than 20%.
On average, homebuyers actually put down around 14% of the home price. For first-time homebuyers, the average down payment is even lower, at just 6%. What does this mean for you? It means that you may not need to save as much money as you initially thought. Furthermore, there are more than 2000 homebuyer assistance programs available nationwide. These programs are designed to support not only first-time buyers but also some repeat buyers.
So, if saving for your down payment feels like a daunting challenge, rest assured that there are programs out there that you may be eligible for. Your dream of homeownership may be more within reach than you realized. If you’re considering purchasing a home this year, please call or email me. I am always willing to help!