More Down Payment Assistance Programs Are Available Than You Think!
You want to buy a house. So, you need 20 percent in the bank. If you don’t have that kind of cash available, that means homeownership is off the table. Right? Wrong! You can absolutely purchase a home with less than 20 percent down. Not only that, but there are many down payment assistance programs that can help get you to your minimum down payment requirement.
Down Payments Are Seen as a Big Hurdle to Homeownership
Say you want to purchase a home in Maryland. The median home price in 2022 is $314,800. To get to that elusive 20 percent down, you’d need $62,960. (That’s not including other closing costs and fees associated with home buying.)
It’s no wonder the National Association of Realtors found 29 percent of first-time home buyers said saving up for a down payment was the “most difficult step in the process.”
Especially in today’s market, saving up can feel like an even more daunting proposition. Inflation and rapidly rising home prices make the task feel like an uphill battle.
Two Important Things to Remember about Down Payments
Before you forlornly close that Zillow tab, it’s important to remember two key points about down payments.
One, needing 20 percent down is a myth. In fact, the median amount first-time buyers in the United States put down on a home is…wait for it…just 7 percent.
The minimum amount down depends on the type of loan you’re seeking. For most conventional loans, you’re looking at a minimum of 3 percent down. For something like a government-backed VA loan, you could qualify with nothing down.
If you have less than 20 percent down, just be aware you will likely be subject to private mortgage insurance. (Learn all about PMI here.)
The second key thing to remember about down payments is that help is available. There are many down payment assistance programs that can help you reach your homeownership goals.
Down Payment Programs Aren’t Just for First-Time Home Buyers
Are you looking for assistance buying a home? There are over two thousand US programs available to help.
These programs largely offer down payment assistance, with 73 percent focusing here. The best news? These programs aren’t just for first-time home buyers.
According to DownPaymentResource.com, “You don’t have to be a first-time buyer. Over 38% of all programs are for repeat homebuyers who have owned a home in the last 3 years.”
Whether this is your first home or your tenth, there are programs to help you afford your real estate goals.
Public Servants Could Get Extra Assistance with Their Down Payments
If you’re a teacher or work in some other capacity as a public servant, there are specialized programs geared specifically to you. Teacher Next Door is just one example among many.
Anyone who falls into these categories could qualify for one of these programs:
- Active-duty military personnel
- First responders
- Government employees
- Health providers
- Teachers
- Veterans
Again, you don’t have to qualify under these special circumstances. Tons of general down payment assistance programs exist at the federal, state, and local levels. If you do serve in these fields, though, you have even more options at your disposal.
Where Can I Learn about These Down Payment Assistance Programs?
Not sure where to search for these types of programs? Even less sure which ones you qualify for? Your best resource is a trusted local real estate agent.
Local real estate professionals will know about these programs in general, but most importantly, they’ll know about which programs cover your area and your circumstances.
Homeownership Isn’t as Distant as You Might Think
If you’re doing the math and thinking a down payment is years and years in your future (or not in the cards at all), remember that these assistance programs exist.
Whatever your circumstances, connect with a local Realtor. Discover what opportunities await you.
When you work with us, this is just one way you’ll find real estate as it should be!
