{"id":1183,"date":"2020-10-13T16:07:22","date_gmt":"2020-10-13T16:07:22","guid":{"rendered":"https:\/\/phphouses.com\/blog\/?p=1183"},"modified":"2020-10-13T16:07:22","modified_gmt":"2020-10-13T16:07:22","slug":"enough-money-saved-payment","status":"publish","type":"post","link":"https:\/\/phphouses.com\/blog\/enough-money-saved-payment\/","title":{"rendered":"Do You Have Enough Money Saved for a Down Payment?"},"content":{"rendered":"
\"\"

Do You Have Enough Money Saved for a Down Payment?<\/p><\/div>\n

One of the biggest misconceptions for first-time homebuyers is how much you\u2019ll need to save for a down payment. Contrary to popular belief,\u00a0you don\u2019t always have to put 20% down to buy a house<\/strong>. Here\u2019s how it breaks down.<\/p>\n

A recent survey by\u00a0Point2Homes<\/em>\u00a0mentions<\/a>\u00a0that 74% of millennials (ages 25-40) say they\u2019re interested in purchasing a home over the next 12 months. The study notes, \u201c88% say they have significantly less savings than the average national down payment amount, which is $62,600<\/em>.\u201d<\/p>\n

Thankfully, $62,600 is\u00a0not the amount every buyer needs for a down payment<\/strong>\u00a0in the United States. There are many different options available, especially for first-time homebuyers (millennial or not). That amount can also be significantly less, depending on the purchase price of the house.<\/p>\n

According to the\u00a0National Association of Realtors\u00a0<\/em>(NAR), \u201cThe median existing-home price for all housing types in August was\u00a0<\/em>$310,600<\/em><\/a>.<\/em>\u201d\u00a0(These are the latest numbers available).<\/em>\u00a0NAR also\u00a0indicates<\/a>\u00a0that:<\/p>\n

\u201cIn 2019, the median down payment was 12 percent for all buyers,\u00a0six percent for first-time buyers<\/strong>, and 16 percent for repeat buyers.\u201d (See graph below):<\/em><\/p><\/blockquote>\n

\"\"

2019 Median Percent Down Payments by U.S. Homebuyers<\/p><\/div>\n

That means if a qualified first-time buyer purchases a home at today\u2019s median price,\u00a0$310,600,\u00a0<\/strong>with a\u00a06% down payment<\/strong>, in reality, the down payment only amounts to\u00a0$18,636<\/strong>. That\u2019s nowhere near $62,600.<\/p>\n

Knowing there are also programs like\u00a0FHA<\/a>\u00a0where the\u00a0down payment can be as low as 3.5%<\/strong>\u00a0of the purchase price for a first-time buyer, that up-front cost could be significantly less \u2013 as little as\u00a0$10,871<\/strong>\u00a0for the same home noted above. There are also other programs like\u00a0USDA<\/a>\u00a0and loans for\u00a0Veterans<\/a>\u00a0that waive down payment requirements.<\/p>\n

The\u00a0Point2Homes\u00a0<\/em>study also shares how much millennials have indicated they\u2019ve saved for a down payment. As we can see in the graph below, 39% have already saved enough for a down payment on a median-priced home. Another 47% are close to reaching that goal, depending on the purchase price of the home.<\/p>\n

\"\"

How Much Have You Saved for a Down Payment?<\/p><\/div>\n

Unfortunately, the lack of knowledge about the homebuying process is keeping many motivated first-time buyers on the sidelines. That\u2019s why it\u2019s important to contact a local real estate professional to understand the requirements in your local area if you want to buy a home. A trusted agent and your lender can guide you through the process.<\/p>\n

Bottom Line<\/strong><\/h3>\n

Be careful not to let big myths about homebuying keep you and your family out of the housing market. Let\u2019s connect to discuss your options today.<\/p>\n

Contact us:<\/strong>
\nPHP Houses
\n142 W Lakeview Ave
\nUnit 1030
\nLake Mary, FL 32746
\nPh:\u00a0(407) 519-0719<\/span>
\nFax:\u00a0(407) 205-1951<\/span>
\nemail:\u00a0info@phphouses.com<\/p>\n

Let\u2019s Connect:<\/strong>
\nFacebook<\/a>
\nLinkedin<\/a>
\nTwitter<\/a>
\nInstagram<\/a><\/p>\n

THE INFORMATION PRESENTED IN THIS ARTICLE IS FOR EDUCATIONAL PURPOSES ONLY AND SHOULD NOT BE CONSIDERED LEGAL, FINANCIAL, OR AS ANY OTHER TYPE OF ADVICE.<\/em><\/h6>\n","protected":false},"excerpt":{"rendered":"

One of the biggest misconceptions for first-time homebuyers is how much you\u2019ll need to save for a down payment. Finish Reading Do You Have Enough Money Saved for a Down Payment?<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[36,69],"tags":[196,38,15,43,92,10,18,27,91,9,31,63,20,12,24,48,13,261,54,47,19,17],"_links":{"self":[{"href":"https:\/\/phphouses.com\/blog\/wp-json\/wp\/v2\/posts\/1183"}],"collection":[{"href":"https:\/\/phphouses.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/phphouses.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/phphouses.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/phphouses.com\/blog\/wp-json\/wp\/v2\/comments?post=1183"}],"version-history":[{"count":1,"href":"https:\/\/phphouses.com\/blog\/wp-json\/wp\/v2\/posts\/1183\/revisions"}],"predecessor-version":[{"id":1187,"href":"https:\/\/phphouses.com\/blog\/wp-json\/wp\/v2\/posts\/1183\/revisions\/1187"}],"wp:attachment":[{"href":"https:\/\/phphouses.com\/blog\/wp-json\/wp\/v2\/media?parent=1183"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/phphouses.com\/blog\/wp-json\/wp\/v2\/categories?post=1183"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/phphouses.com\/blog\/wp-json\/wp\/v2\/tags?post=1183"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}