Did you know that nearly 80% of first-time homebuyers qualify for down payment assistance, but only 13% actually use it? This graph represents a missed opportunity that you can easily avoid. With the right guidance, you can tap into resources that will help you secure your new home faster than you think.
Amplify Your Down Payment Potential
For first-time buyers, making the most of your down payment is crucial. Luckily, there are a variety of programs and loan options designed to help you get into a home with a lower upfront cost. Some loans require as little as 3% down, while certain qualified borrowers—like Veterans—might even qualify for 0% down.
In addition to loan programs, down payment assistance in the form of grants and other financial aid is available. These options can drastically reduce the amount of money you need to save before buying a home.
If you’re curious about what programs might be available to you, the first step is to connect with a trusted lender. Many people are unaware of the help they qualify for, and by not exploring these opportunities, they could be leaving money on the table. Leveraging these resources can boost your down payment, potentially lowering your monthly mortgage payments and even helping you avoid fees like private mortgage insurance (PMI).
Don’t Let Headlines About Rising Down Payments Discourage You
It’s true that news reports have been highlighting rising down payments. According to Redfin, the typical down payment for U.S. homebuyers reached a record high of $67,500 in June 2023, a significant increase from $58,788 the previous year.
However, it’s important to remember that while the average down payment is rising, the minimum down payment requirements haven’t changed. Many buyers are simply opting to put down more money to offset higher mortgage rates and reduce their long-term costs. For current homeowners, leveraging the equity they’ve built up allows them to increase their down payments on their next home. As HousingWire explains:
“. . . buyers are putting down a higher percentage of the purchase price to lower their monthly mortgage payment. And buyers also had more equity from their home sales, which gives them more cushion.”
Why Buyers Are Putting Down More
- Lowering Monthly Payments: Making a larger down payment can significantly lower your monthly mortgage payment. With housing affordability becoming a bigger concern, those with the means to do so are increasing their down payments to make their future payments more manageable.
- Using Equity to Your Advantage: Homeowners who are selling their current homes have likely built up significant equity thanks to recent home price appreciation. These sellers are able to put more down on their next home, giving them a financial advantage over first-time buyers.
The Bottom Line
Your best move? Speak with a trusted lender to explore your options. They can help you navigate available down payment assistance programs, understand loan requirements, and determine the right approach for your situation. There are plenty of resources out there—don’t miss out on an opportunity to get into your dream home.
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Visit us at www.SellFor1Percent.com or call 614-451-6616 to get started! or check out our YouTube Channel to stay up to date on real estate updates!
