Do I need a 20% down payment to purchase a home?

There are so many costs associated with homeownership and the down payment is one that can be a little intimidating. The reason it’s so intimidating is because most of us think we need that 20% to put down and when house prices are up, that seems impossible. However, there is some good news on that front!

  Simply put, the idea that you have to put 20% down in order to get a home is a false! Years ago it was much more common when homes weren’t the prices they are today, and we didn’t have the kind of programs that are now available. But now that we got that all straightened out–how do you determine how much YOU should be putting down?

Figuring out how much you need to put down on your home is dependent on the mortgage program in which you are getting your loan, and what works best for you and your finances. Some mortgage programs may require 3%-5% of the home price, or even as little as 0% down; however, if you want to lower your monthly payments, this is when you would talk to your loan officer and discuss what is best for you and your household.

According to the National Association of Realtors, if you are a first time homebuyer, the average down payment was 6%, while the average for non-first time homebuyers was still only 14%. This is great news if you are in the market but felt like home ownership was way off.

If you are looking into this and want to figure out what is best for you, I suggest reaching out to me and we can discuss your home buying goals and we will get you working with a mortgage officer who can help you in determining what works best for you!