Saving for a Down Payment? Here’s What You Should Know.

<article class="post-488722 post type-post status-publish format-standard has-post-thumbnail hentry" id="post-488722"><span class="entry-date">October 10, 2022</span><div class="entry-header center-block text-center"><h1 class="entry-title">Saving for a Down Payment? Here’s What You Should Know.</h1><div class="shareBlock"><div class="shareTitle">Share</div><div class="shareIcons"><a aria-label="Twitter Share Link" class="twitter solid display-inline-block" data-tracking="Post,Social Post Link Clicked,Twitter" href="http://twitter.com/share?text=Saving+for+a+Down+Payment%3F+Here%E2%80%99s+What+You+Should+Know.&amp;url=https%3A%2F%2Fgilliggroup.com%2Fblog%2Fsaving-for-a-down-payment-heres-what-you-should-know%2F" target="_blank"><span class="force-hidden">Twitter</span></a>
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<p><img alt="Saving for a Down Payment? Here’s What You Should Know. | Simplifying The Market" class="webfeedsFeaturedVisual wp-post-image" decoding="async" link_thumbnail="" loading="lazy" sizes="auto, (max-width: 549px) 100vw, 549px" src="https://files.simplifyingthemarket.com/wp-content/uploads/2022/10/05164451/20221010-KCM-Share-549×300.jpg" srcset="https://files.simplifyingthemarket.com/wp-content/uploads/2022/10/05164451/20221010-KCM-Share-549×300.jpg 549w, https://files.simplifyingthemarket.com/wp-content/uploads/2022/10/05164451/20221010-KCM-Share.jpg 750w" style="display: block; margin-bottom: 5px; clear:both;max-width: 100%;" width="358"/></p>
<p>As you set out to <a href="https://www.simplifyingthemarket.com/2022/09/30/why-buying-a-home-may-make-more-sense-than-renting-infographic/?a=712984-fa409495d5d70154d03a25e81e9540e2">buy a home</a>, saving for a down payment is likely top of mind. But you may still have questions about the process, including how much to save and where to start.<span id="more-47270"></span></p>
<p>If that sounds like you, your down payment could be more in reach than you originally thought. Here’s why.</p>
<h4><strong>The 20% Down Payment Myth</strong></h4>
<p>If you believe you have to put 20% down on a home, you may have based your goal on a common misconception. <em>Freddie Mac</em> <a href="https://myhome.freddiemac.com/buying/down-payments-and-pmi">explains</a>:</p>
<blockquote>
<p><em>“. . . nearly a third of prospective homebuyers think they need a down payment of 20% or more to buy a home. <strong>This myth remains one of the largest perceived barriers to achieving homeownership</strong>.”</em></p>
</blockquote>
<p>Unless it’s specified by your loan type or lender, it’s typically not required to put 20% down. According to the latest <a href="https://www.nar.realtor/research-and-statistics/research-reports/highlights-from-the-profile-of-home-buyers-and-sellers"><em>Profile of Home Buyers and Sellers</em></a> from the <em>National Association of Realtors</em> (NAR), the median down payment hasn’t been over 20% since 2005. There are even loan types, like <a href="https://www.hud.gov/buying/loans">FHA loans</a>, with down payments as low as 3.5%, as well as options like <a href="https://www.benefits.va.gov/homeloans/index.asp">VA loans</a> and <a href="https://www.rd.usda.gov/newsroom/news-release/usda-rural-home-loans-offer-100-financing-and-no-down-payment">USDA loans</a> with no down payment requirements for qualified applicants.</p>
<p>This is good news for you because it means you could be closer to your homebuying dream than you realize. For more information, turn to a trusted lender.</p>
<h4><strong>Down Payment Assistance Programs Can Be a Game Changer</strong></h4>
<p>A professional will be able to show you other options that could help you get closer to your down payment goal. According to latest <a href="https://downpaymentresource.com/homebuyer-resource/homeownership-program-index-highlights-programs-for-community-heroes/"><em>Homeownership Program Index</em></a> from <em>downpaymentresource.com</em>, there are over <strong>2,000 homebuyer assistance programs in the U.S.</strong>, and the majority are intended to help with down payments.</p>
<p>A recent article <a href="https://downpaymentresource.com/homebuyer-resource/5-ways-you-can-benefit-from-down-payment-programs/">explains</a> why programs like these are helpful:</p>
<blockquote>
<p><em>“<strong>These resources can immediately build your home buying power and help you take action sooner than you thought possible</strong>.”</em></p>
</blockquote>
<p>And if you’re wondering if you have to be a <a href="https://www.simplifyingthemarket.com/2022/06/29/homeownership-could-be-in-reach-with-down-payment-assistance-programs/?a=712984-fa409495d5d70154d03a25e81e9540e2">first-time buyer</a> to qualify for these programs, that’s not always the case. According to an article from <a href="https://downpaymentresource.com/professional-resource/more-homebuyer-assistance-programs-introduced-as-affordability-declines-in-most-u-s-counties/"><em>downpaymentresource.com</em></a>:</p>
<blockquote>
<p><em>“It is a common misconception that homebuyer assistance is only available to first-time homebuyers, however, <strong>38% of homebuyer assistance programs in Q1 2022 did not have a first-time homebuyer requirement.</strong>”</em></p>
</blockquote>
<p>There are also location and profession-based programs you could qualify for as well.</p>
<h3><strong>Bottom Line</strong></h3>
<p>Saving for your down payment is an important first step on your homebuying journey. Let’s connect today and make sure you have a trusted lender to help explore your options.</p>
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