As A Buyer, How Much Do You Need To Put Down As A Down Payment?

You made the decision to start searching for your perfect home and make your homeownership dreams a reality, so as a buyer how much do you need as a down payment?

As you begin your home search one thing that may be top of mind is how much down payment do I need to save? Most buyers tend to think 20% down payment is needed to purchase a home, however that is not necessarily true.

According to Freddie Mac, “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 specified by your lender, 20% down is typically not required. Many loan programs available today, like FHA loans which require only 3.5%, USDA and VA loans which require no down payment, are available for qualified applicants.

In addition to loan programs, most buyers are unaware of all the different options available for down payment assistance. Most buyers think they need to be a first-time home buyer to qualify for assistance but that is not always true.

According to an article from downpaymentresource.com, “It is a common misconception that homebuyer assistance is only available to first time home buyers, however 38% of homebuyer assistance programs in Q1 2022 did not have a first-time home buyer requirement.” This is great news for a buyer who now may be closer to owning a home than they realized.

Of course, it is always best to consult the experts so they can show you all your options, debunk the myths and help you get closer to achieving your homeownership goal.