If you’re on the path to buying your first home, let’s talk about one of the best-kept secrets in real estate: down payment assistance. Here’s a surprising stat—around 80% of first-time homebuyers are eligible for down payment help, but only about 13% actually take advantage of it! That’s a huge missed opportunity, and if you’re serious about buying a home, let’s make sure you’re not leaving money on the table.
So, what do you need to know to maximize your down payment opportunities in today’s market? Here’s a breakdown of how you can make the most of the resources available.
Amplify Your Down Payment Potential
For first-time buyers, making the most of your down payment is all about leveraging the programs and loans designed to help you succeed. “Believe me, there are some amazing options out there that can speed up your path to owning a home,” I tell my clients. There are programs that require as little as 3% down, or even 0% for qualified borrowers like veterans.
And let’s not forget about direct down payment assistance programs. These include grants and other forms of help specifically for covering part of your down payment. The best way to find out what’s available is to connect with a trusted lender or financial advisor who can guide you through the options. “If you don’t explore what’s out there, you might miss out on free money that could get you into your home faster.”
Not only can these resources help you hit your down payment goal sooner, but boosting your down payment can also reduce your monthly mortgage payments and potentially eliminate or reduce fees like private mortgage insurance (PMI).
Don’t Let Headlines About Down Payments Intimidate You
With all the talk about rising down payments, it’s easy to feel discouraged. But here’s a critical piece of info: Just because the average down payment amount is going up doesn’t mean that down payment requirements are rising. As a recent report highlighted, “The typical down payment for U.S. homebuyers hit a record high of $67,500 in June, up 14.8% from $58,788 a year earlier.” But here’s the kicker—it’s mostly because more buyers are opting to put down larger amounts to offset rising mortgage rates.
In fact, most of this jump is coming from current homeowners using equity from previous sales to make higher down payments. HousingWire points out that “buyers are putting down a higher percentage of the purchase price to lower their monthly mortgage payment. And buyers also had more equity from their home sales, which gives them more cushion.” This is especially relevant for folks moving from one house to another, using equity they’ve built up over the years to increase their down payment and lower their new monthly payments.
Why a Larger Down Payment Can Be a Smart Move
So, why are some buyers putting down more than the minimum? Here’s the rundown:
- Lower Monthly Mortgage Payments: A bigger down payment often means a more affordable monthly mortgage payment. For many buyers, affordability is a huge factor right now. So if you have the option, putting down more can be a way to lower those monthly costs significantly.
- Homeowners Leveraging Equity: If you already own a home, chances are you have more equity than ever before. Thanks to years of appreciation, homeowners are finding themselves with a solid boost to put toward their next home. First-time buyers may not have this advantage, but that’s where down payment assistance can make a huge difference.
Bottom Line: Let’s Find the Down Payment Assistance You Deserve
What’s the best way to make your down payment go further? Chatting with a knowledgeable lender or real estate agent is key. I’m here to help you identify the assistance options you may qualify for, from grants to loans with lower down payment requirements. There’s plenty of help available, so let’s work together to find the right resources and get you closer to owning your first home.
Ready to explore your options? Let’s get started on maximizing your down payment assistance and make that dream home a reality!
Anytime between “now” and “right now” is a good time to take action on shaping your best life, and that includes where you live. Let’s get the ball rolling on your next steps.
(702) 374-6807. Or drop me a line here.
