The Down Payment Assistance You Didn’t Know About
Are you a first-time homebuyer? You may not realize it, but nearly 80% of first-time buyers qualify for down payment assistance, yet only 13% take advantage of it. Understanding and utilizing these programs can significantly lower the upfront costs of purchasing a home, making homeownership more attainable.
Maximize Your Down Payment with Assistance Programs
If you’re planning to buy a home, it’s essential to explore the many options available to boost your down payment. For first-time buyers, there are loan programs that require as little as 3% down, and some qualified borrowers, like Veterans, can even qualify for 0% down loans. But beyond these traditional options, down payment assistance programs are often overlooked. These programs include grants, loans, and other resources specifically designed to help cover your down payment.
By connecting with a knowledgeable lender, you can discover what programs you qualify for and potentially save thousands of dollars. This additional assistance can reduce the size of your mortgage, lower your monthly payments, and help you avoid or minimize private mortgage insurance (PMI) costs.
Don’t Be Deterred by Rising Average Down Payments
You may have heard that the typical down payment for homebuyers is increasing. A recent Redfin report noted that the average down payment hit a record high of $67,500 in June 2024. But don’t let this scare you away. This rise isn’t due to stricter requirements; instead, it reflects the choices of some buyers who are putting more down to lower their monthly payments in the face of higher mortgage rates.
Here’s why that’s happening:
Bigger Down Payments Lower Monthly Costs: In today’s market, affordability is a challenge. Buyers with the means to make a larger down payment are doing so to reduce their monthly mortgage payments.
Homeowners Have More Equity: Current homeowners have gained substantial equity due to home price appreciation over the past few years. This allows them to make larger down payments on their next home.
However, these trends don’t mean you need to come up with a large down payment to buy a home. Many first-time buyers, particularly those without equity from a previous home, are still taking advantage of low down payment options and assistance programs to achieve homeownership.
Bottom Line
If you’re considering buying a home, don’t miss out on the down payment assistance that’s available to you. Contact a trusted lender to explore your options. They can help you navigate the various programs and resources designed to make homeownership more affordable. Don’t leave money on the table—connect with a pro today to see how you can benefit from these opportunities.
