If you’re considering purchasing a home, don’t let the down payment be a daunting obstacle. The National Association of Realtors (NAR) reports that 38% of first-time homebuyers view saving for a down payment as the most challenging step. However, the truth is, you likely don’t have to put down as much as you might believe:
According to NAR data, the median down payment hasn’t exceeded 20% since 2005. Currently, the median down payment for all homebuyers stands at 15%, dropping even lower to 8% for first-time homebuyers. However, it’s important to note that the median doesn’t set a rigid standard; you can explore options with even lower down payments.
Consider loan types such as FHA loans, offering down payments as low as 3.5%. Additionally, explore options like VA loans and USDA loans that don’t require a down payment for eligible applicants. Another noteworthy resource to explore for assistance with your down payment is down payment assistance programs.
First-Time and Repeat Buyers Are Often Eligible
Down Payment Resource reveals there are thousands of programs for homebuyers, with a significant 75% of them being dedicated to providing down payment assistance.
Eligibility for these programs isn’t exclusive to first-time homebuyers. This implies that regardless of where you stand in your homebuying journey, there may be a suitable option available for you, as highlighted by Down Payment Resource.
“You don’t have to be a first-time buyer. Over 39% of all [homeownership] programs are for repeat homebuyers who have owned a home in the last 3 years.”
For comprehensive information as you seek more details, your first stop should be with a reliable real estate professional. They can provide insights into available options, including additional programs tailored to specific professions or communities.
Additional Down Payment Resources That Can Help
Explore several down payment assistance programs that are aiding numerous buyers in realizing their dream of homeownership:
- Teacher Next Door is tailored to assist teachers, first responders, health providers, government employees, active-duty military personnel, and veterans in achieving their down payment goals.
- Fannie Mae extends down-payment assistance to eligible first-time homebuyers residing in majority-Latino communities.
- Freddie Mac offers options specifically designed for homebuyers with modest credit scores and limited funds for a down payment.
- The 3By30 program outlines actionable strategies to add 3 million new Black homeowners by 2030, providing valuable resources for potential buyers to secure down payments and fulfill their homeownership dreams.
- For Native Americans, Down Payment Resource identifies 42 U.S. homebuyer assistance programs across 14 states, facilitating the path to homeownership by providing support with down payments and associated costs.
If you don’t meet the criteria for these specific programs, rest assured there are numerous other federal, state, and local options worth exploring. A real estate professional can be instrumental in guiding you to the ones that align with your needs as you navigate the available resources.
Bottom Line
Realizing the dream of homeownership might be more attainable than you realize, especially with the right support. To explore your options further, let’s connect.