If you’re in the market for a new home, don’t let the down payment become a major roadblock. According to the National Association of Realtors (NAR), a significant 38% of first-time homebuyers cite saving for a down payment as their most challenging step. However, the good news is that you might not need to put down as much as you imagine.
NAR data reveals that the median down payment hasn’t exceeded 20% since 2005. Currently, the median down payment for all homebuyers is only 15%, dropping even lower to 8% for first-time buyers. However, don’t feel bound by these figures—many qualified buyers put down even less.
For instance, loan types like FHA loans offer down payments as low as 3.5%. Additionally, there are options such as VA and USDA loans with no down payment requirements for eligible applicants. Yet, another valuable resource to explore for down payment assistance is down payment assistance programs.
These Programs Aren’t Just for First-Timers Down Payment Resource states that there are thousands of programs for homebuyers, with 75% dedicated to down payment assistance. Importantly, these programs aren’t exclusive to first-time buyers. Over 39% of all homeownership programs are tailored for repeat homebuyers who have owned a home in the last three years.
To kickstart your exploration, consult with a trusted real estate professional. They can provide insights into available options, including specific programs for certain professions or communities.
Exploring Down Payment Assistance Programs Numerous down payment assistance programs are helping today’s buyers turn homeownership dreams into reality:
- Teacher Next Door targets teachers, first responders, health providers, government employees, active-duty military personnel, and veterans to aid them in reaching their down payment goals.
- Fannie Mae extends down-payment assistance to eligible first-time homebuyers in majority-Latino communities.
- Freddie Mac offers options tailored for homebuyers with modest credit scores and limited funds for a down payment.
- The 3By30 program outlines strategies to add 3 million new Black homeowners by 2030, providing valuable resources for potential buyers to secure down payments.
- Down Payment Resource highlights 42 U.S. homebuyer assistance programs across 14 states for Native Americans, easing the path to homeownership by offering support with down payments and associated costs.
Even if you don’t meet the criteria for these programs, numerous federal, state, and local options are worth exploring. A real estate professional can assist in identifying those that align with your needs.
In Conclusion The dream of homeownership may be more achievable than you think, especially when you tap into the right support. Reach out to a real estate professional to explore the available resources and guide you through the process.