Saving for a Down Payment? Here’s What You Should Know

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When you are set on looking to buy a home, you are most likely thinking about the down payment you need to put down.

If you have questions regarding how much to save, the process, and where you should start saving for a down payment, continue reading to learn more about your down payment.

The 20% Down Payment Myth

It could be a misconception that you absolutely have to put 20% down on a home. Freddie Mac explains:

“. . . 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.”

It is not required for you to put down 20% unless your lender specifically requests that you do. You are able to get an FHA loan with down payments that are as low as 3.5%, with other options such as USDA loans and VA loans with no down payment requirements for qualified applicants. The median down payment has not been over 20% since 2005, according to the National Association of Realtors (NAR) from the Profile of Home Buyers and Sellers.

This actually means that you are one step closer to buying your perfect dream home! Contact me today with any questions (310) 519 - 7670.

Down Payment Assistance Programs Can Be a Game Changer

Want to get closer to your downpayment goal but are not sure how you will do that? There are many professionals out there in over 2,000 homebuyer assistance programs in the U.S that are intended to help with down payments. A recent article explained how these programs are beneficial and helpful for you:

“It is a common misconception that homebuyer assistance is only available to first-time homebuyers, however, 38% of homebuyer assistance programs in Q1 2022 did not have a first-time homebuyer requirement.”

If you are still unsure which program to apply to, there are also profession and location-based programs you would be able to qualify for as well!

Now You Won’t Believe This!!!!

I know of a lender that provides 1% downpayment loans with NO mortgage insurance AND the lender contributes 2% (forgivable after 5 years). SO- you end up paying only 98% for your property! Better than FHA. There are certain qualifications so make sure to contact me.

Saving for that down payment is your first step in your homebuying journey! Connect with me today to start exploring your options (310) 519 - 7670.