Think You Need 20% Down to Purchase a New Home? Maybe Not!
According to a recent Zillow survey, 2 out of 3 renters consider the task of coming up with money for a down-payment the number one hurdle in buying a home. If you are currently in this boat, you are not alone… and just for your information, there are many resources out there designed to help you overcome this challenge!
Our team here at NextHome Discovery wants to help you discover them and get you into your dream home quickly!
Take it from current home owners who took advantage of the programs and resources available to them to get them in their new homes. There are more ways than you think and your Realtor will gladly keep you informed.
Home-buyers are getting more and more creative these days, because quite frankly, times are changing. With average home prices higher now than they were in the past, 20% down just isn’t feasible to most, while it used to be what most home-buyers aimed to accomplish. In fact, the median down payment is now closer to 10% and has been since 2013 according to the NAR. It doesn’t change the fact that a 20% down payment helps to save money on the monthly mortgage payment and PMI (private mortgage insurance) costs.
Still, there are several loan options available to most future home-seekers. Down payments as low as 3.5% (with clauses to eventually remove PMI costs) can and will get people into their dream home these days. Also, little to zero down payment may be needed for U.S. military veterans, service members or residents of certain rural areas. Teachers, fire fighters, and other service job holders may qualify to receive additional down-payment assistance and there are over 2,100 funding programs available according to Downpayment Resource, who tracks home buyer down payment assistance programs.
Where there’s a will there’s always a way.
If saving up or tapping into retirement plans aren’t cutting it and you’re willing to look into other, less traditional methods of coming up with a down payment for your future home, you will likely stumble across many options! One company for example, although not yet in Florida, allows you to tap into your home’s future equity to double your down payment today.
The possibilities of home-ownership seem endless and promising. If you’re ready to start looking at your options today, don’t hesitate to reach out to one of our knowledgeable and professional Realtors!
Check out this recent article for more tips on overcoming the down payment obstacle.