Chuncey Foreman Denver Colorado Realtor & Real Estate

  • Facebook
  • Google+
  • Instagram
  • LinkedIn
  • Twitter
  • Home
  • Search
    • Advanced Search
    • Map Search
  • Market Snapshot & Blog
  • Resources
    • Free Home Evaluation
    • Get Free Property Alerts
    • Current Mortgage Rates
  • About
    • About Chuncey
    • Testimonials
  • FAQs
  • Contact

How Much Down Payment? 💰

January 3, 2022 By Chuncey Foreman

How Much Do You Need for Your Down Payment? | Simplifying The Market

As you set out on your home buying 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? | Simplifying The Market

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. So if you want to purchase a home this year, let’s connect to start the conversation and explore your down payment options.

Filed Under: homeownership, lending, Market Trends, market trends, newsletter, real estate, Rent vs. Buy

Recent Posts

  • Work With a Real Estate Professional 👨
  • How to Survive a Recession 📉
  • Homeownership Can Bring You Joy☺️
  • Huge Leverage When You Sell Today 🏡
  • Will Home Prices Fall This Year? 🤔
  • More Homes Coming to the Market 🏡
  • Today’s Mortgage Rates 💰
  • Tips for First-Time Homebuyers 👌
  • Market Trends Report | MAY. ’22📺
  • Is Your House List Ready? 🤔
* * , *
Equal Housing
Blue Fire Group    Real Estate Websites
© 2022 Copyright
LAC
My Buying Buddy    Powered By MyBuyingBuddy ®