The Down Payment Assistance You Didn’t Know About
Did you know that nearly 80% of first-time homebuyers qualify for down payment assistance, but only 13% actually take advantage of it? If you’re looking to buy a home, don’t miss out on down payment assistance programs that can help make homeownership more affordable.
Amplify Your Down Payment Assistance Potential
If you’re interested in exploring down payment assistance options, including grants, connect with a trusted lender who can help you understand the down payment assistance programs available to you.
For first-time buyers, down payment assistance can make a huge difference. Many options require as little as 3% down, and some qualified borrowers (like veterans) may even qualify for 0% down payments. If you’re not looking into down payment assistance, you might be missing out on some great opportunities.
For example, there are loan options that require as little as 3% down, or even 0% for certain qualified borrowers, like Veterans. And let’s not forget down payment assistance, like grants and other opportunities, that help you cover the upfront cost of your down payment.
If you’re interested in exploring those options and what you may be able to use to your advantage, connect with a trusted lender. Because if you don’t at least see what’s available, you could be leaving money on the table and missing your chance at buying a home. These resources can boost your down payment. And a higher down payment could help lower your eventual monthly mortgage payment, and even avoid or reduce your fees like private mortgage insurance.
Understanding Down Payment Assistance vs. Rising Down Payments
There’s one more thing to address. News coverage has been talking about how the typical down payment is rising. A report from Redfin states:
“The typical down payment for U.S. homebuyers hit a record high of $67,500 in June, up 14.8% from $58,788 a year earlier . . . This was the 12th consecutive month the median down payment rose year over year.”
But don’t let those high dollars scare you. Just because the average down payment is rising doesn’t mean down payment requirements are going up. That’s a key piece of the puzzle to understand. It’s really just because people are choosing to put more down to try to offset higher mortgage rates, and current homeowners who are putting their equity to work are using that to increase their down payment 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.”
Despite the rising average down payment, many first-time buyers can still access down payment assistance that lowers their upfront costs.”
Let’s break those two reasons down a bit:
1. A bigger down payment helps lower your monthly mortgage payment. Affordability has been a challenge for many buyers recently, which is why those who have the ability to make a bigger down payment are going to do so in an effort to lower their future housing costs.
2. Buyers who already own a home have a record amount of equity to leverage. Someone who bought a home a few years ago has gained a significant amount of value in their house, thanks to home price appreciation. These people can put down much more than the average first-time buyer who hasn’t owned a home yet.
Bottom Line
What’s the best thing to do? Talk with a trusted lender about your options. They’ll help you figure out where you stand today and how to access the resources you may qualify for. Because help is out there, you just need to work with a pro to take advantage of it. Here are some first-time home buyer tips.
