Wondering How Much You Need To Save for a Down Payment?

If you’re getting ready to buy your first home, you’re likely focused on saving up for everything that purchase involves. One cost that’s likely top of mind is your down payment. But don't let a common misconception about how much you need to save make the process harder than it could be. #### Understand 20% Isn’t Always the Typical Down Payment _Freddie Mac_ [explains](https://myhome.freddiemac.com/buying/down-payments-and-pmi): ###### _“. . . nearly a third of prospective homebuyers think they need a down payment of 20% or more to buy a home. Unless specified by your loan type or lender, it’s typically not required to put 20% down. This means you could be closer to your homebuying dream than you realize. According to the [_National Association of Realtors_](https://www.nar.realtor/research-and-statistics/research-reports/highlights-from-the-profile-of-home-buyers-and-sellers) (NAR), the median down payment hasn’t been over 20% since 2005. In fact, the median down payment today is only 14%. And it’s even lower for first-time homebuyers at just 6% (s_ee graph below_): [](https://files.simplifyingthemarket.com/wp-content/uploads/2022/12/22133955/todays-median-down-payment-is-less-than-20-percent-MEM.png) #### Learn About Options That Can Help You Toward Your Goal If saving for a down payment still feels like a challenge, know that there’s help available. A real estate professional and trusted lender can show you options that could help you get closer to your down payment goal. According to latest [_Homeownership Program Index_](https://downpaymentresource.com/professional-resource/homebuyer-assistance-programs-proliferate-in-q3-as-median-u-s-down-payment-skyrockets/) from _Down Payment Resource_, there are over 2,000 homebuyer assistance programs in the U.S., and the majority are intended to help with down payments. Plus there are even loan types, like [FHA loans](https://www.hud.gov/buying/loans), with down payments as low as 3.5%, as well as options like [VA loans](https://www.simplifyingthemarket.com/2022/11/10/va-loans-can-help-veterans-achieve-their-dream-of-homeownership/?a=713258-9a8342bcf821027012880bf1d7cccbf7) and USDA loans with no down payment requirements for qualified applicants. To understand your options, be sure to do your homework. If you’re interested in learning more about down payment assistance programs, information is available through sites like [_Down Payment Resource_](http://www.downpaymentresource.com/). Then, partner with a trusted lender to learn what you qualify for on your homebuying journey. ### Bottom Line Remember, a 20% down payment isn’t always required. If you want to purchase a home this year, let’s connect. You’ll also want to make sure you have a trusted lender so you can explore your down payment options. * * *