Unlocking Down Payment Assistance: What You Need to Know
Did you know that nearly 80% of first-time homebuyers are eligible for down payment assistance, but only 13% take advantage of it? If you’re looking to buy a home, this is a critical opportunity you don’t want to miss.
Maximize Your Down Payment Potential
As a first-time buyer, one of the most important steps you can take is to explore all the resources available to help with your down payment. There are various programs, including loan options that require as little as 3% down, or even 0% for qualified buyers like Veterans. Additionally, many buyers may be eligible for grants and other forms of down payment assistance that can cover a portion of these costs.
By working with a trusted lender, you can discover which options are available to you. These programs can boost your down payment, ultimately helping you lower your monthly mortgage payments and potentially avoid fees like private mortgage insurance (PMI). Without researching and using these resources, you could be leaving money on the table—and missing your chance to secure a home sooner than you think.
Don’t Let Rising Down Payment Averages Discourage You
You may have seen headlines about rising down payments, but don’t let them scare you away. A report from Redfin noted:
“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.”
While the average down payment is indeed rising, that doesn’t mean down payment requirements are going up. Many buyers are simply choosing to put more down to reduce their monthly mortgage payments. Current homeowners, who often have significant equity built up, are also contributing larger down payments when purchasing their next home.
Here’s why:
Lower Monthly Payments: By making a larger down payment, buyers can lower their future monthly mortgage costs—something that’s been especially helpful as affordability becomes a challenge for many.
Equity Boost: Buyers who are selling their current homes are often using the equity they’ve gained from price appreciation to put down a larger sum. This gives them an advantage over first-time buyers who may not have as much saved.
Bottom Line
If you’re thinking about buying a home, the best step you can take is to talk to a trusted lender about your options. They can help you explore the down payment assistance programs you may qualify for, giving you the support you need to make homeownership a reality. Help is out there—you just need the right professional on your side to take advantage of it.