Skin In The Game...

Real Estate Agent with Keller Williams Evolution - 447 Boston Street Topsfield, MA 92593-B

The down payment is a sticking point with many buyers. With escalating home prices and interest rates, of recent, it's easy to see why buyers are concerned when looking at the conventional rule of thumb being 20% down. That's not the case though, as there are programs and mortgage options that exist that do not require a 20% down payment. If you live in a qualified rural area the USDA has a program with no money down. FHA is as little as 3% and the VA does provide no down payment loans to veterans. So, don't get too wound up as there ARE avenues available that can be of great assistance to buyers. Enjoy the article below.

Wondering How Much You Need To Save for a Down Payment?

Wondering How Much You Need To Save for a Down Payment?

If you’re getting ready to buy your first home, you’re likely focused on saving up for everything that purchase involves. One cost that’s likely top of mind is your down payment. But don’t let a common misconception about how much you need to save make the process harder than it could be.

Understand 20% Isn’t Always the Typical Down Payment

Freddie Mac explains:

“. . . nearly a third of prospective homebuyers think they need a down payment of 20% or more to buy a home. This myth remains one of the largest perceived barriers to achieving homeownership.

Unless specified by your loan type or lender, it’s typically not required to put 20% down. This means you could be closer to your homebuying dream than you realize. According to the National Association of Realtors (NAR), the median down payment hasn’t been over 20% since 2005. In fact, the median down payment today is only 14%. And it’s even lower for first-time homebuyers at just 6% (see graph below):

Wondering How Much You Need To Save for a Down Payment? | Keeping Current Matters

Learn About Options That Can Help You Toward Your Goal

If saving for a down payment still feels like a challenge, know that there’s 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 latest Homeownership Program Index from Down Payment Resource, there are over 2,000 homebuyer assistance programs in the U.S., and the majority are intended to help with down payments.

Plus there are even loan types, like FHA loans, with down payments as low as 3.5%, as well as options like VA loans and USDA loans with no down payment requirements for qualified applicants.

To understand your options, be sure to do your homework. If you’re interested in learning more about down payment assistance programs, information is available through sites like Down Payment Resource. Then, partner with a trusted lender to learn what you qualify for on your homebuying journey.

Bottom Line

Remember, a 20% down payment isn’t always required. If you want to purchase a home this year, reach out to a trusted real estate professional to start the conversation and explore your down payment options.

Thank you to KCM for compiling this information

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I pray that God our Father and the Lord Jesus Christ will be kind to you and bless you with peace

2 Thessalonians 1:2



Broker Sales Associate

KELLER WILLIAMS REALTY - Topsfield/Newburyport

49 Main Street
Topsfield, MA 01983
 978-887-3995  ~ Office
 978-270-3037  ~ Cell

Comments (9)

Dick Betts
REALTOR® The Villages, Florida

I work in one of the highest cash sales area in the country or folks retiring with a nest egg or selling a home up north.  When I see what young families have to deal with locally I feel for them!

Jan 11, 2023 09:47 AM
Dorie Dillard Austin TX
Coldwell Banker Realty ~ 512.750.6899 - Austin, TX
NW Austin ~ Canyon Creek and Spicewood/Balcones

Good  afternoon,

Good reminder than a buyer has opportunities other than putting 20% down on a mortgage to purchase a home. There are sooooo many programs to check out with your lender.

Jan 11, 2023 10:48 AM
Doug Dawes
Keller Williams Evolution - 447 Boston Street Topsfield, MA - Georgetown, MA
Your Personal Realtor®

It's really putting a damper on buyers that do not have cash from a sale. Dick Betts 

That's why it is good there are programs they can access to help them out

Jan 11, 2023 10:55 AM
Doug Dawes
Keller Williams Evolution - 447 Boston Street Topsfield, MA - Georgetown, MA
Your Personal Realtor®

Wages have not kept up with price increases and are preventing many buyers from making a home purchase Dorie Dillard Austin TX thus, it is a good thing that lenders and agencies offer buyer assistance programs

Jan 11, 2023 10:57 AM
Brian England
Ambrose Realty Management LLC - Gilbert, AZ
MBA, GRI, REALTOR® Real Estate in East Valley AZ

Without skin in the game it is difficult to take someone serious, actions always speak louder than words in my book.

Jan 12, 2023 08:01 AM
Doug Dawes
Keller Williams Evolution - 447 Boston Street Topsfield, MA - Georgetown, MA
Your Personal Realtor®

Very true Brian England without skin in the game most people will have no real motivation to perform, except those people where Zero down programs exist. I hope you have a fantastic day

Jan 12, 2023 08:32 AM
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Doug, just received an offer over the weekend on my listing and was VA, with NO downpayment.   There are options.

Jan 17, 2023 06:49 AM
Doug Dawes
Keller Williams Evolution - 447 Boston Street Topsfield, MA - Georgetown, MA
Your Personal Realtor®

Good afternoon Joan Cox 

Yes, there are options available such as VA, USDA (for rural areas), FHA, and States have programs too. 

Jan 18, 2023 11:21 AM
Anna Jenny

Wow, "Skin In The Game" by Doug Dawes was a real gem I found using word finder. The part about down payments was eye-opening and helped me realize that I don't necessarily need to save up to 20% for a home purchase. I appreciated the mention of the Down Payment Resource as a helpful tool for finding assistance programs. It's great to know that there are options out there for buyers who may be struggling to save. Thanks to Word Finder, I stumbled upon this article and gained some valuable insights.

Sep 11, 2023 01:37 AM