How Much Do You Need for Your Home Down Payment?

Dated: January 3 2022

Views: 30

How Much Do You Need for Your Down Payment? | MyKCM

As you set out on your homebuying journey, you likely have a plan in place, and you’re working on saving for your purchase. But do you know how much you actually need for your down payment?

If you think you have to put 20% down, you may have set your goal based on a common misconception. Freddie Mac says:

“The most damaging down payment myth—since it stops the homebuying process before it can start—is the belief that 20% is necessary.”

Unless specified by your loan type or lender, it’s typically not required to put 20% down. According to the Profile of Home Buyers and Sellers from the National Association of Realtors (NAR), the median down payment hasn’t been over 20% since 2005. It may sound surprising, but today, that number is only 13%. And it’s even lower for first-time homebuyers, whose median down payment is only 7% (see graph below):

How Much Do You Need for Your Down Payment? | MyKCM

What Does This Mean for You?

While a down payment of 20% or more does have benefits, the typical buyer is putting far less down. That’s good news for you because it means you could be closer to your homebuying dream than you realize.

If you’re interested in learning more about low down payment options, there are several places to go. There are programs for qualified buyers with down payments as low as 3.5%. There are also options like VA loans and USDA loans with no down payment requirements for qualified applicants.

To understand your options, you need to do your homework. If you’re interested in learning more about down payment assistance programs, information is available through sites like downpaymentresource.com. Be sure to also work with a real estate advisor from the start to learn what you may qualify for in the homebuying process.

Bottom Line

Remember: a 20% down payment isn’t always required. If you want to purchase a home this year, let’s connect to start the conversation and explore your down payment options.

#hybridrealestate #hybridpcs #thehybridexperience

Latest Blog Posts

The Gen Z of Homebuyers Is Here

Many members of Generation Z (Gen Z) are aging into adulthood and deciding whether to rent or buy a home. If you find yourself in this group, it’s important to understand you&rsquo

Read More

Why Mortgage Pre-Approval Is Key for Homebuyers in 2022

You may have heard that it’s important to get pre-approved for a mortgage at the beginning of the homebuying process, but what does that really mean, and why is it so

Read More

Americans Choose Real Estate in 2022 as the Best Investment

Some HighlightsAccording to a Gallup poll, real estate has been rated the best long-term investment for eight years in a row.Real estate tops the list because you’re not just buying

Read More

When Is the Right Time To Sell in 2022?

Some HighlightsIf you’re trying to decide when to list your house, the time is now. There are plenty of buyers eagerly waiting for your home to hit the market.The latest data

Read More