Are you ready to embark on the journey of homeownership but feel shackled by the daunting prospect of saving up for a hefty down payment? It’s a common misconception that you need to squirrel away a staggering 20% of a home’s price before you can even dream of keys in hand. But let me let you in on a little secret – that’s not necessarily the case.
In fact, recent trends and expert insights reveal a much more accessible path to your homeownership dreams. So buckle up and let’s dive into the truth about down payments.
Forget what you’ve heard about needing a small fortune upfront. While stashing away 20% might be prudent in some cases to dodge mortgage insurance, it’s far from a universal rule. Contrary to popular belief, most folks opt for a much more manageable down payment.
According to The Mortgage Reports, the notion that you must cough up 20% is a myth perpetuated by hearsay. The reality? The median down payment hasn’t soared above 20% since 2005. In today’s landscape, the average sits comfortably at 15% for all homebuyers, and for those venturing into homeownership for the first time, it’s an even more enticing 8%.
So, what’s the takeaway? You might be a lot closer to your homeownership dreams than you think.
But wait, there’s more good news. You’re not alone in this endeavor. There’s a treasure trove of resources out there designed to help you reach your down payment goals. Among these resources is The City of Durham Down Payment Assistance (DPA) Program, which provides eligible individuals and families with up to $80,000 for down payment and closing costs assistance. This assistance is available for the purchase of a home to be used as the primary residence within the City of Durham. The funds are provided as a forgivable loan with a 0% interest rate and a 15-year term. It operates on a first-come, first-served basis until $5.7 million in available program funding is depleted. Additionally, there are over 2,000 homebuyer assistance programs scattered across the U.S., offering various forms of support tailored to your needs.
And let’s not forget about loan options. FHA loans offer down payments as low as 3.5%, while VA and USDA loans sweeten the deal with no down payment requirements for eligible applicants.
Here’s the kicker – don’t let the myth of the 20% down payment hold you back. Waiting until you’ve amassed a small fortune might actually cost you in the long run. As U.S. Bank aptly puts it, time is money. While you’re busy squirreling away funds and paying rent, the price of your future abode might skyrocket. With home prices projected to appreciate over the next half-decade, seizing the opportunity now could mean building equity rather than playing catch-up with escalating prices.
So, what’s the bottom line? You don’t need to drain your savings account to unlock the door to homeownership. If you’re itching to make that leap this year, let’s chat. Together, we can kickstart the conversation about your homeownership goals and set you on the path to making them a reality.
Remember, the key to your dream home might be closer than you think.
Reach out to me and let’s make it happen! 📲 919.923.4264