Don’t Let the 20% Down Payment Myth Hold You Back from Your Homebuying Dreams

Planning to buy your first home in the vibrant Tampa Bay area? The prospect of saving up for a down payment may seem daunting, especially if you’ve heard that you need to save 20% of the home’s price. However, this common belief is often not the case.

The National Association of Realtors (NAR) reports that the median down payment hasn’t exceeded 20% since 2005. In today’s market, the median down payment for all homebuyers is only 15%, and for first-time homebuyers, it’s even lower at just 8% (see graph below)

The key takeaway? You may not need to save as much as you originally thought to achieve your homeownership dream in Tampa Bay and its surrounding areas.

Learn About Resources That Can Help You Toward Your Goal

There are over 2,000 homebuyer assistance programs in the U.S., many of which are designed to aid with down payments, according to Down Payment Resource. Additionally, specific loan options can also provide valuable assistance. For instance, FHA loans offer down payments as low as 3.5%, while VA and USDA loans have no down payment requirements for qualified applicants.

Considering the multitude of resources available to support your down payment, consulting with your loan officer or broker is the best way to identify what you qualify for. They are well-versed in local grants and loan programs that could potentially benefit you in achieving your homeownership goals.

Overcome Misconceptions and Seize the Opportunity to Own a Home

Don’t let the misconception that you must have 20% saved up hold you back from pursuing homeownership in Tampa Bay and its nearby neighborhoods. Delaying your plans until you’ve saved 20% may actually come at a cost. Home prices are projected to continue appreciating over the next five years, potentially leading to an increase in the price of your future home. Moving forward with available resources now can help you capitalize on future price growth and build equity, rather than incurring additional costs.

In conclusion, it’s important to remember that a 20% down payment is not always a prerequisite for purchasing a home. If you’re considering making a move this year, connect with HOMM Real Estate Services to initiate a discussion about your homebuying aspirations in the Tampa Bay area and how we can assist you in achieving them.