{"id":6325,"date":"2020-10-13T10:00:28","date_gmt":"2020-10-13T10:00:28","guid":{"rendered":"https:\/\/blog.sfloridaluxuryhomes.com\/?p=6325"},"modified":"2020-10-13T10:00:28","modified_gmt":"2020-10-13T10:00:28","slug":"do-you-have-enough-money-saved-for-a-down-payment","status":"publish","type":"post","link":"https:\/\/blog.sfloridaluxuryhomes.com\/?p=6325","title":{"rendered":"Do You Have Enough Money Saved for a Down Payment?"},"content":{"rendered":"
\n

\"Do<\/p>\n

One of the biggest misconceptions for first-time homebuyers is how much you’ll need to save for a down payment. Contrary to popular belief, you don’t always have to put 20% down to buy a house<\/strong>. Here’s how it breaks down.<\/span><\/p>\n

A recent survey by Point2Homes<\/em> mentions<\/a> that 74% of millennials (ages 25-40) say they’re interested in purchasing a home over the next 12 months. The study notes, “88% say they have significantly less savings than the average national down payment amount, which is $62,600<\/em>.”<\/p>\n

Thankfully, $62,600 is not the amount every buyer needs for a down payment<\/strong> in the United States. There are many different options available, especially for first-time homebuyers (millennial or not). That amount can also be significantly less, depending on the purchase price of the house.<\/p>\n

According to the National Association of Realtors <\/em>(NAR), “The median existing-home price for all housing types in August was <\/em>$310,600<\/em><\/a>.<\/em>” (These are the latest numbers available).<\/em> NAR also indicates<\/a> that:<\/p>\n

\n

“In 2019, the median down payment was 12 percent for all buyers, six percent for first-time buyers<\/strong>, and 16 percent for repeat buyers.” (See graph below):<\/em><\/p>\n<\/blockquote>\n

\"Do<\/a>That means if a qualified first-time buyer purchases a home at today’s median price, $310,600, <\/strong>with a 6% down payment<\/strong>, in reality, the down payment only amounts to $18,636<\/strong>. That’s nowhere near $62,600.<\/p>\n

Knowing there are also programs like FHA<\/a> where the down payment can be as low as 3.5%<\/strong> of the purchase price for a first-time buyer, that up-front cost could be significantly less – as little as $10,871<\/strong> for the same home noted above. There are also other programs like USDA<\/a> and loans for Veterans<\/a> that waive down payment requirements.<\/p>\n

The Point2Homes <\/em>study also shares how much millennials have indicated they’ve saved for a down payment. As we can see in the graph below, 39% have already saved enough for a down payment on a median-priced home. Another 47% are close to reaching that goal, depending on the purchase price of the home.\"Do<\/a>Unfortunately, the lack of knowledge about the homebuying process is keeping many motivated first-time buyers on the sidelines. That’s why it’s important to contact a local real estate professional to understand the requirements in your local area if you want to buy a home. A trusted agent and your lender can guide you through the process.<\/p>\n

Bottom Line<\/strong><\/h3>\n

Be careful not to let big myths about homebuying keep you and your family out of the housing market. Let’s connect to discuss your options today.<\/p>\n

Content previously posted on Keeping Current Matters<\/p><\/div>\n","protected":false},"excerpt":{"rendered":"

\"DoOne of the biggest misconceptions for first-time homebuyers is how much you’ll need to save for a down payment. Contrary to popular belief, you don’t always have to put 20% down to buy a house. Here’s how it breaks down. A recent survey by Point2Homes mentions that 74% of millennials (ages 25-40) say they’re interested […]<\/div>\n","protected":false},"author":3,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"bgseo_title":"","bgseo_description":"","bgseo_robots_index":"","bgseo_robots_follow":"","footnotes":""},"categories":[3,134,128,84,124,121],"tags":[],"class_list":["post-6325","post","type-post","status-publish","format-standard","hentry","category-blog","category-buying-myths","category-down-payments","category-for-buyers","category-millennials","category-pricing"],"_links":{"self":[{"href":"https:\/\/blog.sfloridaluxuryhomes.com\/index.php?rest_route=\/wp\/v2\/posts\/6325","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/blog.sfloridaluxuryhomes.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/blog.sfloridaluxuryhomes.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/blog.sfloridaluxuryhomes.com\/index.php?rest_route=\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/blog.sfloridaluxuryhomes.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=6325"}],"version-history":[{"count":0,"href":"https:\/\/blog.sfloridaluxuryhomes.com\/index.php?rest_route=\/wp\/v2\/posts\/6325\/revisions"}],"wp:attachment":[{"href":"https:\/\/blog.sfloridaluxuryhomes.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=6325"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blog.sfloridaluxuryhomes.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=6325"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blog.sfloridaluxuryhomes.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=6325"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}