Wondering How Much You Need To Save for a Down Payment?

As you prepare to purchase your first home, you’ll be focused on saving on all costs associated with the purchase. Perhaps one of the most important costs is the down payment. But don’t let common misconceptions about how much you need to save make the process harder than you might think.

Understand 20% Isn’t Always the Typical Down Payment

Freddie Mac explains:

“. . . nearly a third of prospective homebuyers think they need a down payment of 20% or more to buy a home. This myth remains one of the largest perceived barriers to achieving homeownership.”

Unless otherwise directed by the loan type or lender, the 20% deduction is generally not required. This means you may be closer to your home-buying dream than you think. According to the National Association of Realtors (NAR), the median down payment he has not exceeded 20% since 2005. In fact, today’s median down payment is just 14%. First-time homebuyers are even lower, at just 6% (see chart below).

Learn About Options That Can Help You Toward Your Goal

If you’re having trouble putting together a down payment, know that help is available. A real estate expert and trusted lender will give you options to get you closer to your down payment goals. According to Down Payment Resources’ latest homeownership program index, there are more than 2,000 homeownership programs in the United States, most designed to help with downpayments.There are also loan types like FHA loans with a down payment of 3.5% of him, and options with no down payment requirements for eligible applicants like VA loans and USDA loans.To understand your options, you need to do your homework. If you want to learn more about down payment assistance programs, you can find information on sites such as down payment resources. Next, work with a trusted lender to learn if you qualify on your home buying journey.

Bottom Line

Please note that the 20% deposit is not always required. If you’re planning to buy a home this year, let’s get connected. You should also make sure you have a reliable lender so you can consider down payment options. Find out why Kaya Homes is the leader in Long Island Real Estate and are your go-to realtor in the Lynbrook, Oceanside, Malverne, Hewlett, Valley Stream, East Rockaway, Woodmere, Cedarhurst, Baldwin, North Woodmere, Woodsburgh, Hewlett Neck Hewlett Harbor, Bellmore,Wantagh,Merrick and Freeport area.