How Much Do I Need For A Down Payment?

Last month I had a new client call me and I quote “I have almost saved my 20% down payment”.  My heart sank for her.  I asked her why do you think you need 20% down, she replied “that’s the minimum required down payment”, I followed up by asking how long she had been saving for her down payment , and she replied 6.5 years.

The thought of all the missed opportunity in appreciation since 2009 just made me realize again how important our job as a Real Estate Professional and Lender professional is.  It is our responsibility to continue getting the correct information out to the public in a timely manner that helps people fulfill their dream of owning a home.

I wanted to share this chart that basically explains what the latest “Home Price Expectation Survey “ reports, this is a survey of over 100 economists and real estate experts, this is their prediction for home prices for the next five years. This chart was going through my mind when I was speaking to her.

Builder.com just did a study nationwide that it would take nearly 8 years for the average American to save a 10% down payment.

What if you only needed 3%?

What if you could take advantage of one of the Freddie Mac or Fannie Mae 3% down Programs?  Saving 3% will not take nearly as long and becomes attainable.

Bottom Line

You may be closer than you think to having enough for a down payment and taking advantage of the opportunities to build family wealth!  We are always willing and honored to help you evaluate your ability to buy today.