Down Payment Assistance Programs Can Help Pave the Way to Homeownership

<article class="post-875224 post type-post status-publish format-standard has-post-thumbnail hentry" id="post-875224"><span class="entry-date">December 12, 2023</span><div class="entry-header center-block text-center"><h1 class="entry-title">Down Payment Assistance Programs Can Help Pave the Way to Homeownership</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=Down+Payment+Assistance+Programs+Can+Help+Pave+the+Way+to+Homeownership&amp;url=https%3A%2F%2Fgilliggroup.com%2Fblog%2Fdown-payment-assistance-programs-can-help-pave-the-way-to-homeownership%2F" target="_blank"><span class="force-hidden">Twitter</span></a>
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</div></div><div class="post-tax post-category"><span></span><a href="../category/realtor-blog/index.html" rel="tag">Realtor Blog</a></div><div class="post-tax post-post_tag"></div></div><div class="entry-content"><div><img alt="Down Payment Assistance Programs Can Help Pave the Way to Homeownership Simplifying The Market" decoding="async" loading="lazy" src="https://media.agentaprd.com/sites/222/20231212-Down-Payment-Assistance-Programs-Can-Help-Pave-the-Way-to-Homeownership.webp" style="display: block; margin-bottom: 5px; clear: both; max-width: 100%;" width="358"/>
<p>If you’re looking to buy a home, your down payment doesn’t have to be a big hurdle. <a href="https://www.nar.realtor/research-and-statistics/research-reports/highlights-from-the-profile-of-home-buyers-and-sellers" rel="noopener noreferrer" target="_blank">According</a> to the <em>National Association of Realtors</em> (NAR), 38% of first-time homebuyers find saving for a down payment the most challenging step. But the reality is, you probably don’t need to put down as much as you think:</p>
<p><a href="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20231207/20231212-Todays-Median-Down-Payment-Is-Much-Lower.png" rel="noopener noreferrer" target="_blank"><img decoding="async" src="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20231207/20231212-Todays-Median-Down-Payment-Is-Much-Lower.png"/></a></p>
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<p>Data from NAR <a href="https://cdn.nar.realtor/sites/default/files/documents/2023-profile-of-home-buyers-and-sellers-highlights-11-13-2023.pdf" rel="noopener noreferrer" target="_blank">shows</a> the median down payment hasn’t been over 20% since 2005. In fact, the median down payment for all homebuyers today is only 15%. And it’s even lower for first-time homebuyers at 8%. But just because that’s the median, it doesn’t mean you have to put that much down. Some qualified buyers put down even less.</p>
<p>For example, there are loan types, like <a href="https://www.hud.gov/buying/loans" rel="noopener noreferrer" target="_blank">FHA loans</a>, with down payments as low as 3.5%, as well as options like <a href="https://www.simplifyingthemarket.com/2022/11/10/va-loans-can-help-veterans-achieve-their-dream-of-homeownership/?a=712984-fa409495d5d70154d03a25e81e9540e2" rel="noopener noreferrer" target="_blank">VA loans</a> and <a href="https://www.rd.usda.gov/programs-services/single-family-housing-programs/single-family-housing-guaranteed-loan-program" rel="noopener noreferrer" target="_blank">USDA loans</a> with no down payment requirements for qualified applicants. But let’s focus in on another valuable resource that may be able to help with your down payment: down payment assistance programs.</p>
<h4><strong>First-Time and Repeat Buyers Are Often Eligible</strong></h4>
<p>According to <a href="https://downpaymentresource.com/" rel="noopener noreferrer" target="_blank">Down Payment Resource</a>, there are thousands of programs available for homebuyers – and 75% of these are down payment assistance programs.</p>
<p>And it’s not just first-time <a href="https://www.simplifyingthemarket.com/2023/10/26/affordable-homeownership-strategies-for-gen-z/?a=712984-fa409495d5d70154d03a25e81e9540e2" rel="noopener noreferrer" target="_blank">homebuyers</a> that are eligible. That means no matter where you are in your homebuying journey, there could be an option available for you. As <em>Down Payment</em> <em>Resource</em> <a href="https://downpaymentresource.com/" rel="noopener noreferrer" target="_blank">notes</a>:</p>
<blockquote><p><em>“</em><strong><em>You don’t have to be a first-time buyer.</em></strong><em> Over 39% of all [homeownership] programs are for repeat homebuyers who have owned a home in the last 3 years.”</em></p></blockquote>
<p>The best place to start as you search for more information is with a trusted real estate professional. They’ll be able to share more information about what may be available, including additional programs for specific professions or communities. </p>
<h4><strong>Additional Down Payment Resources That Can Help</strong></h4>
<p>Here are a few down payment assistance programs that are helping many of today’s buyers achieve the dream of homeownership:</p>
<ul>
<li>Teacher Next Door is designed to help teachers, first responders, health providers, government employees, active-duty military personnel, and veterans reach their down payment goals.</li>
<li><a href="https://www.fanniemae.com/casa" rel="noopener noreferrer" target="_blank">Fannie Mae</a> provides down-payment assistance to eligible first-time homebuyers living in majority-Latino communities.</li>
<li><a href="https://myhome.freddiemac.com/buying/down-payments-and-pmi" rel="noopener noreferrer" target="_blank">Freddie Mac</a> also has options designed specifically for homebuyers with modest credit scores and limited funds for a down payment.</li>
<li>The <a href="https://3by30.org/homeownership-101/get-help-buying-a-home/" rel="noopener noreferrer" target="_blank">3By30</a> program lays out actionable strategies to add 3 million new Black homeowners by 2030. These programs offer valuable resources for potential buyers, making it easier for them to secure down payments and realize their dream of homeownership.</li>
<li>For Native Americans, <a href="https://downpaymentresource.com/homebuyer-resource/highlighting-42-native-american-homebuyer-assistance-programs-in-honor-of-native-american-heritage-month/" rel="noopener noreferrer" target="_blank">Down Payment Resource</a> highlights 42 U.S. homebuyer assistance programs across 14 states that ease the path to homeownership by providing support with down payments and other associated costs.</li>
</ul>
<p>Even if you don’t qualify for these types of programs, there are many other federal, state, and local options available to look into. And a real estate professional can help you find the ones that meet your needs as you explore what’s available. </p>
<h3>Bottom Line</h3>
<p>Achieving the dream of having a home may be more within reach than you think, especially when you know where to find the right support. To learn more, reach out to a real estate professional who can guide you through the available resources.</p>
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