The Down Payment Dilemma!
- Charles "Skip" Geiser
- May 6
- 3 min read
Updated: 5 days ago
Saving up to buy a home can feel a little intimidating, especially right now. And for many first-time buyers, the idea that you have to put 20% down can feel like a major roadblock.
But that’s actually a common misconception. Here’s the truth.
Do You Really Have To Put 20% Down When You Buy a Home?
Unless your specific loan type or lender requires it, odds are you won’t have to put 20% down. There are loan options out there designed to help first-time buyers like you get in the door with a much smaller down payment.
For example, FHA loans offer down payments as low as 3.5%, while VA and USDA loans have no down payment requirements for qualified applicants, like Veterans. So, while putting down more money does have its benefits, it’s not essential. As The Mortgage Reports says:
“. . . many homebuyers are able to secure a home with as little as 3% or even no down payment at all . . . the 20 percent down rule is really a myth.”
According to the National Association of Realtors (NAR), the median down payment is a lot lower for first-time homebuyers at just 9% (see chart below):
The takeaway? You may not need to save as much as you originally thought.
And the best part is, there are also a lot of programs out there designed to give your down payment savings a boost. And chances are, you’re not even aware they’re an option.
Why You Should Look into Down Payment Assistance Programs
Believe it or not, almost 80% of first-time homebuyers qualify for down payment assistance (DPA), but only 13% actually use it (see chart below):
That’s a lot of missed opportunity. These programs aren’t small-scale help, either. Some offer thousands of dollars that can go directly toward your down payment. As Rob Chrane, Founder and CEO of Down Payment Resource, shares:
“Our data shows the average DPA benefit is roughly $17,000. That can be a nice jump-start for saving for a down payment and other costs of homeownership.”
Imagine how much further your homebuying savings would go if you were able to qualify for $17,000 worth of help. In some cases, you may even be able to stack multiple programs at once, giving what you’ve saved an even bigger lift. These are the type of benefits you don't want to leave on the table.
Bottom Line
Saving up for your first home can feel like a lot, especially if you’re still thinking you have to put 20% down. The truth is that’s a common myth. Many loan options require much less, and there are even programs out there designed to boost your savings too.
To learn more about what’s available and if you’d qualify for any down payment assistance programs, talk to a trusted lender.
Information from Pensacola Realtors MLS
Today's Active Homes For Sale
Escambia and Santa Rosa County
3259 v (4)
Above $600,000
675 v (4)
Between $500,000 - $599,999
250 ^ (5)
Between $400,000 - $499,999
400
Between $300,000 - $399,999
851 ^ (3)
Between $200,000 - $299,999
723 v (6)
Between $100,000 - $199,999
320
Under $99,999
40 v (2)
RED is UP Black Remained the Same Green is DOWN
Current Mortgage Rate
30 YR Fixed 6.90% (+.00%) 15 YR Fixed 6.22% (+.03%)
Current Mortgage Rates
Florida
SkipSOLDMyHome.com with
Plum Tree Real Estate Marketing
850.221.6442
Alabama
SkipSOLDMyHome.com with
Rob Brooks Realty
850.221.6442
Start
Cary Schmidt's Introduction of Done
This article provides information and opinions but is not meant as investment advice. Skip Geiser LLC, Charles "Skip" Geiser or Plum Tree Real Estate Marketing does not assure the accuracy or completeness of the information or opinions presented here. It is important to conduct your own research, due diligence, and seek professional advice before making any investment decisions. Skip Geiser LLC, Charles "Skip" Geiser or Plum Tree Real Estate Marketing is not responsible for any loss or damage resulting from relying on the information or opinions in this article.
Komentáře