The Weekly Welcome

Happy Monday ,

It’s been a strange week, folks—smoke from Canadian wildfires made another surprise appearance, giving the Midwest that signature “campfire but make it apocalyptic” vibe. Threads turned one year old (and somehow still no one knows why it exists), and meanwhile, everyone on Zillow still thinks they need 20% down to buy a house. Spoiler: that last one is the biggest myth of them all. This week, we’re busting that outdated down payment myth wide open. Whether you’re a first-timer, a move-up buyer, or just casually scrolling listings during your third iced coffee, you’ll want to read this. Because what you think you need to save and what you actually need might be two very different things…

I’d also like to make sure we are connected on IG (HERE) and also, I’m opening my calendar to Q&A this month. Watch below ⤵️.

The Truth About Down Payments (It’s Not What You Think)

Buying a home is exciting… until you start thinking about the down payment. That’s when the worry can set in.

“I’ll never save enough.”

“I need a small fortune just to get started.”

“I guess I’ll just rent forever.”

Sound familiar? You’re not alone. And you’re definitely not out of luck.

Here’s the thing: a lot of what you’ve heard about down payments just isn’t true. And once you know the facts, you might realize you’re a lot closer to owning a home than you think.

Let’s break it all down and bust some big down payment myths while we’re at it.

Myth 1: “I need to come up with a big down payment.”

This one stops a lot of people in their tracks. A recent poll from Morning Consult and NeighborWorks shows 70% of Americans think they need to put at least 10% down to buy a home. And 11% aren’t sure what’s required at all (see graph below): 

The truth? According to theNational Association of Realtors(NAR),the typical down payment for first-time buyers has been between 6% and 9% since 2018.But there’s more to the story. If you qualify for an FHA loan,you may only need to put 3.5%down.And VA loans typically don’t require a down payment at all. So, there are options out there that can really make a difference for some buyers.

Myth 2: “It’ll take forever to save up for a down payment.”

Sure, saving can take time. But it may not have to be as long as you think. In many states, reaching your goal can happen faster than you might expect, especially when you know your budget and have a clear savings plan.

According to a new study, the amount of time varies depending on where you live. The map below shows, on average, how many years it takes to save up for a 10% down payment based on typical home values and income levels in each state (see map below):

But remember, in most cases you won’t even need a down payment as large as 10%.Plus, no matter how much money you end up putting down, it won’t all have to come out of your pocket. Here’s why.

Myth 3: “I have to do it all on my own.”

This is one of the biggest myths of all. The reality is, there are thousands of down payment assistance programs out there, and the same poll from Morning Consult and NeighborWorks shows 39% of people don’t even know about them. That means a lot of potential homebuyers could already be closer to homeownership – they just don’t realize it. 

These assistance programs are designed to help people like you who are ready to own a home but just need a little support getting started. As Miki Adams, President at CBC Mortgage Agency, explains:

Bottom Line

If you’ve been putting off buying a home because the down payment feels like too much to tackle, let’s talk. You may not need as much as you think, and there are plenty of resources out there, so you don’t have to do it alone. You just need an expert to point you in the right direction.

If a down payment wasn’t holding you back, would you be ready to start your home search?

Wishing you a fantastic week ahead!

Have questions or need guidance? Reply to this email or text “HOME” to (224) 544-9080 for immediate assistance. I’d love to hear from you!