We have several past posts that discuss right now being a great time to buy a home. Low interest rates are making it more affordable than it has been for a very long time. But do you really need the standard 20% for a down payment? You may need less than you think.
- In 2019 the median down payment was only 12% for ALL buyers. Broken down it was 6% for first time buyers and 16% for repeat buyers. Nowhere near 20%.
- The median price for all home types on the market as of August was $310,600.
- Quick calculations show that, on average, first time buys need $18,636 saved for a down payment. And this amount could be even lower if the loan is obtained through programs like FHA.
If these numbers have you reconsidering whether you can actually afford to buy, consult a professional realtor and mortgage lender to discuss further.
Are you surprised at the actual amount buyers are putting down to buy a new home?