Saving For a Down Payment? Read This First!

Saving For a Down Payment? Read This First!

The first thing people begin to prepare for when buying a home is the down payment. We’ve all been conditioned to think that 20% is what we need to save…. but is that true?

It is not true, and your down payment could be more in reach than you originally thought. Here’s why.

The 20% Down Payment Myth

Those who believe they have to put 20% down on a home may have based that goal on a common misconception. Freddie Mac explains:

“. . . nearly a third of prospective homebuyers think they need a down payment of 20% or more to buy a home. This myth remains one of the largest perceived barriers to achieving homeownership.”

Unless it’s specified by your loan type or lender, it’s typically not required to put 20% down. According to the latest Profile of Home Buyers and Sellers from the National Association of REALTORS® (NAR), the median down payment has been less than 20% since 2005. Depending on the loan types, like FHA loans, your down payment is as low as 3.5% If you qualify for a VA loan or USDA loan, you could buy with no down payment requirement!

This is good news for you because it means you could be closer to your homebuying dream than you realize. For more information on specific loan programs, let’s get you connected with a top lender!

Down Payment Assistance Programs Can Be a Game Changer

If you don’t qualify for a zero down payment loan type and need help to get you closer to your down payment goal, there could be help available. According to latest Homeownership Program Index from, there are over 2,000 homebuyer assistance programs in the U.S., and the majority are intended to help with down payments.

A recent article explains why programs like these are helpful:

“These resources can immediately build your home buying power and help you take action sooner than you thought possible.”

And if you’re wondering if you have to be a first-time buyer to qualify for these programs, that’s not always the case. According to an article from

“It is a common misconception that homebuyer assistance is only available to first-time homebuyers, however, 38% of homebuyer assistance programs in Q1 2022 did not have a first-time homebuyer requirement.”

Bottom Line

Although saving for your down payment is an important first step on your homebuying journey, let's connect to work on a plan that’s right for you. Partnering with me and trusted top lenders, we can get a program designed for you. This could also determine what down payment you will need.

Work With Bill

Get assistance in determining current property value, crafting a competitive offer, writing and negotiating a contract, and much more. Contact me today.

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