Is A 20 Down Payment Really Necessary To Purchase A Home

Is A 20 Down Payment Really Necessary To Purchase A Home


Is a 20% Down Payment Really Necessary To Purchase a Home? | MyKCM

There’s a common misconception that, as a homebuyer, you need to come up with 20% of the total sale price for your down payment. In fact, a recent survey by Lending Tree asks what is keeping consumers from purchasing a home. For over half of those surveyed, the ability to afford a down payment is the biggest hurdle.

That may be because those individuals assume a 20% down payment is necessary. While putting more money down if you’re able can benefit buyers, putting 20% down is not mandatory. As Freddie Mac puts it:

The most damaging down payment myth—since it stops the homebuying process before it can start—is the belief that 20% is necessary.”

If saving that much money sounds overwhelming, you might be ready to give up on the dream of homeownership before you even begin – but you don’t have to. According to the Profile of Home Buyers and Sellers from the National Association of Realtors (NAR), the median down payment hasn’t been over 20% since 2005. It may sound surprising, but today’s average down payment is only 12%. That number is even lower for first-time homebuyers, whose average down payment is only 7%.

Based on the Home Buyers and Sellers Generational Trends Report from NAR, the graph below shows an even closer look at the down payment percentage various age groups pay:Is a 20% Down Payment Really Necessary To Purchase a Home? | MyKCMAs the graph shows, the only groups who put 20% or more down on average are older homebuyers who likely can use the sale of an existing home to fuel a larger down payment on their next home.

What does this mean for you?

If you’re a prospective homebuyer, it’s important to know you don’t have to put the full 20% down. And while saving for any down payment amount may feel like a challenge, keep in mind there are programs for qualified buyers that allow them to purchase a home with a down payment as low as 3.5%. There are also options like VA loans and USDA loans with no down payment requirements for qualified applicants.

To understand your options, you do need to do your homework. If you’re interested in learning more about down payment assistance programs, information is available through sites like downpaymentresource.com. Be sure to also work with a real estate advisor from the start to learn what you may qualify for in the homebuying process.

Bottom Line

Don’t let the myth of the 20% down payment halt your homebuying process before it begins. If you want to purchase a home this year, let’s connect to start the conversation and explore your options.


It takes professionals who study expert opinions and data to separate fact from fiction. DM me today to see why it’s still a good time to buy.
#textme2069224641 #adeelrealestate #adeelsellshomes http://www.yourwashingtonhomes.com http://www.zillow.com/profile/Adeel-Q/


Adeel Qureshi Headshot
Author:
Phone: 206-548-6529
Dated: September 22nd 2021
Views: 4
About Adeel: As a Real Estate professional and lifelong Washington resident, I understand the unique needs of fir...

Property Search









RSS Feed

View our latest blog posts in your RSS reader. Click here to access. RSS

Search Blog

Recent Blogs

Homebuyer Tips For Finding The One INFOGRAPHIC - Some Highlights The best advice
Where Will I Go If I Sell My House - A real estate agent serves as
The Big Question Should You Renovate Or Move - The last 18 months changed what
Dont Wait For A Lower Mortgage Rate It Could Cost You - Today’s housing market is truly

Our Bloggers

Saved Properties

This is a list of your favorite properties. We will email you if a property is reduced or leaves the market.

Click 'Save' to add a property to this list.

Register / Login

New & returning visitors please enter your information to login.

By clicking 'register' you are agreeing to our terms of use & giving us expressed written consent to contact you.

Questions? Comments? Complaints?

This message will go directly to the head of our team.

Location & Address

Adeel Real Estate - Powered by Skyline Properties Inc
19515 North Creek Parkway Suite #214
Bothell, WA
206-922-4641