Most first-time homeowners think they need a substantial down payment in order to purchase a home. According to recent data from the National Association of REALTORS®, 35 percent of consumers believe that they need between 16 percent and 20 percent of a home’s purchase price for a down payment – and another 10 percent of consumers think they need more than a 20 percent down payment when buying a home.
But is that actually true? Do you actually need a high down payment in order to buy your first home?
As it turns out- maybe not.
While every home sale is different, most first-time buyers put significantly less than 20 percent towards their down payment – and are still able to successfully purchase a home. According to NAR’s data, since 2018, the average down payment for first-time homebuyers has fallen to between 6 and 7 percent. Depending on the type of loan you qualify for you could pay as little as 3.5 percent for your down payment with some loans providing 100 percent financing options!
Saving up 6 to 7 percent of a home’s purchase price is a lot more attainable than 20 percent. so, if you’ve put off purchasing a home because you thought you needed 20 percent (or more!) as a down payment, it may be time to let go of that misconception, reconsider your strategy, and start thinking about buying your dream home.
Give Southern Dreams Realty a call for all your real estate needs! We have several lenders that we work with that can get you the best rates and product for what you need when purchasing your new home!
Southern Dreams Realty
102 Gantt Street
Lexington, SC 29072