How Much Do I Need To Save for a Down Payment?

display of a living room for home buying

If you’re preparing to purchase your first home, you’re likely focused on saving up for all the associated costs. One of the most pressing expenses is likely your down payment, but don’t let a common misconception about the amount you need to save make the process more difficult than it needs to be. With the right knowledge and preparation, you can make the home-buying process a smooth and successful one.

Unless specified by your loan type or lender, it is typically not necessary to put down 20%. This means you may be closer to achieving your homebuying dream than you think. According to the National Association of Realtors (NAR), the median down payment has not exceeded 20% since 2005. In fact, the median down payment today is a mere 14%. With this in mind, you may be able to purchase your dream home sooner than you expected.

If saving for a down payment still feels like a challenge, know that there is help available. A real estate professional and trusted lender can show you options that could help you get closer to your down payment goal. According to the latest Homeownership Program Index from Down Payment Resource, there are over 2,000 homebuyer assistance programs in the U.S., many of which are designed to provide assistance with down payments. With the right guidance and resources, you can make your dream of homeownership a reality.

Doing your homework is essential when it comes to understanding your loan options. For instance, FHA loans offer low down payments of as little as 3.5%, while VA and USDA loans may not require any down payment from qualified applicants. To get the most out of your homebuying journey, consider researching down payment assistance programs through sites like DownPaymentResource.com. Finally, partner with a reliable lender to determine what you qualify for.

Remember, a 20% down payment isn’t always necessary when purchasing a home. If you’re looking to buy a house this year, let’s connect and discuss your options. It’s important to have a reliable lender to help you explore the various down payment possibilities.

The information contained, and the opinions expressed, in this article are not intended to be construed as investment advice. Diane Casey Luong Realtor does not guarantee or warrant the accuracy or completeness of the information or opinions contained herein. Nothing herein should be construed as investment advice. You should always conduct your own research and due diligence and obtain professional advice before making any investment decision. Diane Casey Luong will not be liable for any loss or damage caused by your reliance on the information or opinions contained herein.

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About Diane Casey Luong

As an award-winning, full-time Realtor®, Diane is a proven leader among Worcester MA real estate agents, fully committed to you and your property goals.

As a requested speaker, Diane educates audiences on topics such as the purchasing foreclosure properties, nuances of the real estate market from neighborhood to neighborhood, and understanding the ever-changing trends in the real estate industry.

A graduate of the Massachusetts Academy of Real Estate, Diane has brought her expertise in real estate to Worcester, MA, and its surrounding towns.

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Diane Casey Luong
Realtor
REMAX Advantage 1
25 Union Street
4th Floor
Worcester, MA 01608