Myth or Fact: You Need a 20% Down Payment to Buy a Home.
What’s Actually Happening
The belief that a 20% down payment is necessary to purchase a home is a prevalent myth that often deters potential buyers from entering the housing market. In reality, many first-time homebuyers contribute significantly less. In 2023, the typical down payment for first-time homebuyers was 8%, marking the highest percentage since 1997. According to Rocket Mortgage, 73% of first-time buyers put down 15% or less, with many paying between 3% and 5%. Government-backed loans offer opportunities for minimal or no down payments: FHA Loans require as little as 3.5% down for qualified buyers. VA Loans offer 0% down for eligible veterans and active-duty service members. USDA Loans provide 0% down for qualifying buyers in designated rural areas.
How Exception Realty Helps You Navigate These Realities
At Exception Realty, we are dedicated to making your journey to homeownership straightforward and informed. We provide clear information on actual down payment expectations, eliminating the 20% assumption. We assist in identifying suitable loan programs, including FHA, VA, USDA, and low-down-payment conventional loans. We help locate available down payment assistance programs, grants, and other resources to reduce upfront costs.
Bottom Line
You don't need a 20% down payment to buy a home. Most first-time buyers pay much less, and various financing programs can help bridge the gap. If down payment concerns have been holding you back, let's discuss how Exception Realty can guide you toward homeownership with realistic and accessible options.
Sources: Keep Current Matters
