“I really want to buy a house. But I’ll never save up a 20% down payment, so I may as well just forget it!” If I had a nickel for every time I’ve heard this statement, I’d have a lot of nickels! But. seriously, it’s time to debunk the myth of the requirement of a 20% down payment once and for all.
Freddie Mac surveyed first-time homebuyers and determined that nearly a third of them still believe that a 20% down payment is required in a home purchase. Truly, this lingering belief is one of the largest barriers for many would-be homeowners in making their dreams come true!
What’s the truth?
Yes, some loan programs DO require a 20% down payment, but this is not typical for most home loans today. Believe it or not, there are home loan programs, such as FHA, that require as little as 3.5% down, and VA and USDA loans that may require no downpayment at all for a qualified applicant.
What does this mean? It means that you might be closer to buying a home than you realized!
Don’t forget that in addition to loans that require a low down payment, there are also down payment assistance programs that may help some homebuyers bridge that downpayment gap.And the best news? Contrary to popular belief, many of these assistance programs do not require that applicants be first-time homebuyers.
Be sure to ask your lender about these programs to determine the best options for your
personal situation. Perhaps it’s time for you to turn from would-be homeowner to homeowner!
What’s the Takeaway?
Saving for a down payment will always be an important aspect of the home buying process. But be sure to leverage the loan programs and down payment assistance options that may be available to you. Who knows? Owning a home may be just around the corner. Check out my buyer resources and give me a call. 707-636-4215