03/28/2024
Let’s talk about the three most common myths I hear about down payments (and what the reality is!):
MYTH #1: I need to put 20% down on a home.
THE TRUTH: You absolutely do not need to put down 20%! On average, first time homebuyers are currently putting down 8%, and repeat buyers put down 19%. While a down payment of 20% allows for a lower monthly payment (and may eliminate the need for mortgage insurance), it is not necessary.
MYTH #2: I need to save my entire down payment myself.
THE TRUTH: If you are unable to save the amount that you need for your down payment, you may be able to take advantage of down payment assistance programs. There are a variety of programs on the county, state, and federal level, and some are geared specifically towards first-time homebuyers. A lender can help identify which programs may be a good fit for you!
MYTH #3: Down payments could never be 0%.
THE TRUTH: There are loan programs specifically designed to have zero down payment. However, there are certain criteria that need to be met to qualify. Your lender will help you determine whether you are eligible!
There are a lot of options to consider, and as a homebuyer, you’re not expected to be an expert on them. This is why it’s so important to work with a team that will help guide you: an excellent local realtor (🙋♀️) and an equally excellent local lender, who will provide you with a variety of options and explain the pros and cons of each. Let's chat! 🏠
