Myth: You Need A 20% Down Payment To Buy A Home
If you think you have to put 20% down, you may have set your goal based on a common misconception. Freddie Mac says:
The most damaging down payment myth—since it stops the homebuying process before it can start—is the belief that 20% is necessary.
Unless specified by your loan type or lender, it's typically not required to put 20% down. According to the Profile of Home Buyers and Sellers from the National Association of Realtors (NAR), the median down payment hasn't been over 20% since 2005. It may sound surprising, but today, that number is only 13%. And it's even lower for first-time homebuyers, whose median down payment is only 7%(see graph below):
Remember: a 20% down payment isn't always required. If you want to purchase a home this year, let's connect to start the conversation and explore your down payment options.
Contact Loan On Time, experienced Realtors in California for help purchasing or selling a home.