How much of a downpayment do you need to buy a home? Less than you might think! Many people believe that in order to purchase a home, you need a 20% downpayment. Studies show it’s one of the most enduring home buying myths.
In reality, the median downpayment among all home buyers is only about 10%. For first-time home buyers (comprising more than one-third of all home buyers), the downpayment is significantly lower, in the 3.5% to 5% range. There are even some no downpayment loan options, such as the VA home loan program.
That’s why if you’re thinking of purchasing a home, it’s a good idea to visit a reputable lender who can look at your financial situation, including how much you’ve saved, your debt level, credit score and other information to determine which home financing programs you may qualify for. You may just be surprised!
Here are some more interesting facts about home buying and financing across the country from the National Association of Realtors: