How Much Do You Need For Down Payment

Dated: January 13 2022

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How Much Do You Need for Your Down Payment?

How Much Do You Need for Your Down Payment?


As you set out on your homebuying journey, you likely have a plan in place, and you’re working on saving for your purchase. But do you know how much you actually need for your down payment?

If you think you have to put 20% down, you may have set your goal based on a common misconception. Freddie Mac says:

“The most damaging down payment myth—since it stops the homebuying process before it can start—is the belief that 20% is necessary.”

Unless specified by your loan type or lender, it’s typically not required to put 20% down. According to the Profile of Home Buyers and Sellers from the National Association of Realtors (NAR), the median down payment hasn’t been over 20% since 2005. It may sound surprising, but today, that number is only 13%. And it’s even lower for first-time homebuyers, whose median down payment is only 7% (see graph below):

How Much Do You Need for Your Down Payment? | Keeping Current Matters

What Does This Mean for You?

While a down payment of 20% or more does have benefits, the typical buyer is putting far less down. That’s good news for you because it means you could be closer to your homebuying dream than 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 loans and USDA loans with no down payment requirements for qualified applicants.

To understand your options, you need to do your homework. If you’re interested in learning more about down payment assistance programs, information is available through sites like downpaymentresource.com. Be sure to also work with a real estate advisor from the start to learn what you may qualify for in the homebuying process.

Bottom Line

Remember: a 20% down payment isn’t always required. If you want to purchase a home this year, reach out to a trusted real estate professional to start the conversation and explore your down payment options.

I am pleased to connect you with some great lenders that can get you all the important information you need about loans.  Getting pre-approved makes you a strong buyer and connects you to your goal of homeownership!

Let's talk!

Robin Cantrell, Realtor 

The Glover Team Inc.
United Real Estate Premier, 
540-845-7651 cell#
540-374-1111 office#
992 Bragg Rd., Suite A, Fredericksburg VA 22407
Licensed in the Commonwealth of Virginia
Robin.thegloverteam@gmail.com
 
Text robin to 540-369-8076 to access my mobile MLS app

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Robin Cantrell

Real estate is a natural extension of my passion for family and community. In my spare time, I can be found spending time with my family, enjoying the outdoors on the local walking trails or doing....

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