According to the Profile of Home Buyers and Sellers from NAR, the median down payment hasn’t been over 20% since 2005. Today, the median down payment for all homebuyers is only 13%. And it’s even lower for first-time homebuyers. Typically, they've put down just 7%. Better yet, there are also loan options that require as little as 3.5% (or even 0%) down for buyers who qualify ( see chart below ):
Median Down Payments Today’s median down payment is far less than 20%
3.5%
13%
7%
With Some Loan Options
All Homebuyers
First-Time Homebuyers
Sources: NAR, FHA
What Does This Mean for You? While a down payment of 20% or more does have benefits, the typical buyer is putting far less than that down. That’s good news for you because it means you could be closer to your homebuying dreamthan you realize. If you’re interested in learning more about low down payment options, there are several places to go. There are programs for qualified buyers with down payments as low as 3.5%. There are also options like VA and USDA loans with no down payment requirements for qualified applicants. To understand the programs that are out there, you need to do your homework. Information is available through sites like downpaymentresource.com . But it also helps to turn to the experts for insights and advice. Be sure to work with a real estate advisor from the start to learn what you may qualify for in the homebuying process.
Bottom Line Don’t let down payment myths keep you from hitting your homeownership goals. If you’re looking to buy this year, let’s review your options together.
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