{"id":2072,"date":"2021-09-22T18:34:27","date_gmt":"2021-09-22T18:34:27","guid":{"rendered":"https:\/\/phphouses.com\/blog\/?p=2072"},"modified":"2021-09-22T18:34:27","modified_gmt":"2021-09-22T18:34:27","slug":"20-payment-really-necessary-purchase-home","status":"publish","type":"post","link":"https:\/\/phphouses.com\/blog\/20-payment-really-necessary-purchase-home\/","title":{"rendered":"Is a 20% Down Payment Really Necessary To Purchase a Home?"},"content":{"rendered":"
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Is a 20% Down Payment Really Necessary To Purchase a Home?<\/p><\/div>\n

There\u2019s a common misconception that, as a\u00a0homebuyer<\/a>, you need to come up with 20% of the total sale price for your down payment. In fact, a recent survey by\u00a0Lending Tree<\/em><\/a>\u00a0asks what is keeping consumers from purchasing a home.\u00a0For over half of those surveyed, the ability to afford a down payment is the biggest hurdle.<\/strong><\/p>\n

That may be because those individuals assume a 20% down payment is necessary. While putting more money down if you\u2019re able can\u00a0benefit<\/a>\u00a0buyers, putting 20% down is not mandatory. As\u00a0Freddie Mac<\/em><\/a>\u00a0puts it:<\/p>\n

\u201cThe most damaging down payment myth\u2014since it stops the homebuying process before it can start\u2014is the belief that 20% is necessary<\/strong>.\u201d<\/em><\/p><\/blockquote>\n

If saving that much money sounds overwhelming, you might be ready to give up on the dream of homeownership before you even begin \u2013 but you don\u2019t have to. According to the\u00a0Profile of Home Buyers and Sellers<\/em><\/a>\u00a0from the\u00a0National Association of Realtors<\/em>\u00a0(NAR), the median down payment hasn\u2019t been over 20% since 2005.\u00a0It may sound surprising, but today\u2019s average down payment is only 12%.<\/strong>\u00a0That number is even lower for\u00a0first-time homebuyers<\/a>, whose average down payment is only 7%.<\/p>\n

Based on the\u00a0Home Buyers and Sellers Generational Trends Report<\/em><\/a>\u00a0from NAR, the graph below shows an even closer look at the down payment percentage various age groups pay:<\/p>\n

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Median Percent Down Payment by Age of Homeowner<\/p><\/div>\n

As the graph shows, the only groups who put 20% or more down on average are older homebuyers who likely can use the sale of an existing home to fuel a larger down payment on their next home.<\/p>\n

What does this mean for you?<\/strong><\/h4>\n

If you\u2019re a prospective homebuyer, it\u2019s important to know you don\u2019t have to put the full 20% down. And while\u00a0saving<\/a>\u00a0for any down payment amount may feel like a challenge, keep in mind there are programs for qualified buyers that allow them to purchase a home with a down payment as low as 3.5%. There are also options like VA loans and USDA loans with no down payment requirements for qualified applicants.<\/p>\n

To understand your options, you do need to do your homework. If you\u2019re interested in learning more about\u00a0down payment assistance<\/a>\u00a0programs, information is available through sites like\u00a0downpaymentresource.com<\/em><\/a>.<\/em>\u00a0Be sure to also work with a real estate advisor from the start to learn what you may qualify for in the homebuying process.<\/p>\n

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

Don\u2019t let the myth of the 20% down payment halt your homebuying process before it begins. If you want to purchase a home this year, let\u2019s connect to start the conversation and explore your options.<\/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><\/h5>\n","protected":false},"excerpt":{"rendered":"

There\u2019s a common misconception that, as a\u00a0homebuyer, you need to come up with 20% of the total sale price for your down payment. Finish Reading Is a 20% Down Payment Really Necessary To Purchase a Home?<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[36],"tags":[196,38,43,268,10,18,27,91,245,49,42,23,40,33,308,345,228,63,20,12,48,13,28,54,47,19,6],"_links":{"self":[{"href":"https:\/\/phphouses.com\/blog\/wp-json\/wp\/v2\/posts\/2072"}],"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=2072"}],"version-history":[{"count":1,"href":"https:\/\/phphouses.com\/blog\/wp-json\/wp\/v2\/posts\/2072\/revisions"}],"predecessor-version":[{"id":2075,"href":"https:\/\/phphouses.com\/blog\/wp-json\/wp\/v2\/posts\/2072\/revisions\/2075"}],"wp:attachment":[{"href":"https:\/\/phphouses.com\/blog\/wp-json\/wp\/v2\/media?parent=2072"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/phphouses.com\/blog\/wp-json\/wp\/v2\/categories?post=2072"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/phphouses.com\/blog\/wp-json\/wp\/v2\/tags?post=2072"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}