How Much Money Do You Need To Put Down On A Home Purchase?

Are you ready to buy your dream home, but wondering how much you need to put down as a down payment? It’s a common concern for many buyers, but you might be surprised by how much you really need.

Let’s clear up some myths and provide you with some helpful tips about down payments.

Many prospective buyers believe they need a 20% down payment to purchase a home. According to Freddie Mac, “Nearly a third of prospective homebuyers think they need a down payment of 20% or more to buy a home.” This myth often holds people back from pursuing homeownership, but the truth is, unless specified by your lender, a 20% down payment is typically not required.

There are several loan options that require much less upfront. For instance, FHA loans only require a 3.5% down payment, USDA and VA loans offer no down payment for qualified buyers, and Native American 184 loans have a 2.25% down payment.

Beyond loan programs, many buyers don’t realize that down payment assistance is available to more people than they think. You don’t have to be a first-time homebuyer to qualify for assistance. In fact, 38% of homebuyer assistance programs in 2022 didn’t have a first-time homebuyer requirement, according to DownpaymentResource.com. This means there’s a good chance you could qualify for help with your down payment, even if you’ve bought a home before.

With so many loan programs and assistance options, there are more opportunities for homeownership than ever before. It's important to consult with real estate experts to explore your options and debunk these common myths. Our team is here to help you navigate the process and find the best solution for you. Whether you’re buying your first home or your next, we’ll help you understand your financing options and get you closer to your dream home.

If you’re ready to take the next step, click the link to reach out to us. Let’s make your homeownership dreams a reality.