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Scott Hobbs Realtor of Ocean Township

The Down Payment Assistance You Didn’t Know About

by scott hobbs

(Article last updated: OCTOBER, 2024)

Believe it or not, almost 80% of first-time homebuyers qualify for down payment assistance, but only 13% actually use it. So if you’re hoping to buy a home, this is a mission-critical gap to close – fast.​​​

​Here’s what you need to know to make the most of your down payment in today’s housing market.

 

Amplify Your Down Payment Potential

For first-time buyers, the name of the game with down payments is making sure you’re taking advantage of all the resources out there designed to help you. Many of them can get you to your goal faster than you may have thought possible. 

For example, there are loan options that require as little as 3% down, or even 0% for certain qualified borrowers, like Veterans. Also, let’s not forget down payment assistance, like grants and other opportunities, that help you cover the upfront cost of your down payment. 

If you’re interested in exploring those options and what you may be able to use to your advantage, connect with a trusted lender. Because if you don't at least see what’s available, you could be leaving money on the table and missing your chance at buying a home. These resources can boost your down payment, and a higher down payment could help lower your eventual monthly mortgage payment. You may even be able to avoid or reduce your fees like private mortgage insurance (PMI). 

Don’t Let News Headlines About Down Payments Scare You

There’s one more thing to address. News coverage has been talking about how the typical down payment is rising. A report from Redfin states:

“The typical down payment for U.S. homebuyers hit a record high of $67,500 in June, up 14.8% from $58,788 a year earlier . . . This was the 12th consecutive month the median down payment rose year over year.”

But don’t let those high dollars scare you. Just because the average down payment is rising doesn’t mean down payment requirements are going up. That’s a key piece of the puzzle to understand. It’s really just because people are choosing to put more down to try to offset higher mortgage rates, and current homeowners who are putting their equity to work are using that to increase their down payment on their next home. As HousingWire explains:

“. . . buyers are putting down a higher percentage of the purchase price to lower their monthly mortgage payment. And buyers also had more equity from their home sales, which gives them more cushion.”

Let’s break those two reasons down a bit:

1. A bigger down payment helps lower your monthly mortgage payment. Affordability has been a challenge for many buyers recently, which is why those who have the ability to make a bigger down payment are going to do so in an effort to lower their future housing costs. 

2. Buyers who already own a home have a record amount of equity to leverage. Someone who bought a home a few years ago has gained a significant amount of value in their house, thanks to home price appreciation. These people can put down much more than the average first-time buyer who hasn’t owned a home yet.

Bottom Line

What’s the best thing to do? Talk with a trusted lender about your options. They’ll help you figure out where you stand today and how to access the resources you may qualify for. Because help is out there, you just need to work with a pro to take advantage of it. If you don’t have a trusted lender, contact me, and I’ll refer you to honest, straightforward loan officers who will guide and advise you appropriately.

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        Salt + Cedar Properties

            260 Parker Avenue

         Manasquan, NJ 08736

 Office: 732-529-2470 


 Cell: 732-996-3720

 Email: hobbsbroker@gmail.com

Get in touch any time! 

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SCOTT HOBBS

I fell in love with the Jersey Shore having spent many summers here ever since I was a small child. I am originally from Scotch Plains, NJ, but I eventually established roots down the shore and have been enjoying the Monmouth County lifestyle for more than two decades. Before entering real estate, I managed my own, highly successful, business working directly with Fortune 500 companies. There I sharpened and perfected my service, negotiating, and deal-making skills. I employ those strengths every day for the best interests of my clients, whether they are buying or selling property. I have traveled extensively around the world and during one visit to Colombia, I met my beautiful wife, Paola. Today we are raising our young son in Ocean Township.
         

ABOUT THE AUTHOR

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Scott Hobbs New Jersey Ocean Township Realtor

©2022 by Scott Hobbs. 

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