If you're in the market for a new home, overcoming the down payment hurdle doesn't have to be a daunting task. The National Association of Realtors (NAR) reports that 38% of first-time homebuyers consider saving for a down payment one the most biggest challenges. However, the truth is, you likely don't need to contribute as much upfront as you might think.
NAR data reveals that the median down payment has not exceeded 20% since 2005. Currently, the median down payment for all homebuyers stands at about 15%, dropping even further to 8% for first-time homebuyers. However, this median figure doesn't dictate the amount you must contribute; some eligible buyers opt for even lower down payments.
Take, for instance, certain loan types such as FHA loans, offering down payments as minimal as 3.5%. Additionally, options like VA loans and USDA loans come with no down payment requirements for qualified applicants. Beyond these loan programs, another valuable resource worth exploring for down payment support is down payment assistance programs.
According to Down Payment Resource, there are thousands of programs catering to homebuyers, with a significant 75% of them specifically designed as down payment assistance programs. And eligibility is not necessarily limited to first-time homebuyers. Regardless of your current stage in the homebuying process, there may be a suitable option for you.
Realizing the dream of homeownership might be more attainable than you realize, particularly when you're aware of where to access the proper support. For further information, give us a call and we can assist you in navigating the available resources.
Mindy Costanzo
(970) 209-2300