Saving for a down payment may be easier than you think

According to the National Association of Realtors, the most difficult step in the homebuying process is saving for a down payment., which is NAR’s site for homeowners, recently reported that the 20 percent down payment requirement is “one of the biggest misconceptions in home buying.” Misconception, schmichconception. Saving for a down payment is not that difficult to accomplish.

Let’s begin with the 20% misconception. The average down payment for first-time homebuyers in 2021 was 12 percent of the purchase price, according to NAR. The average down payment amount for first-time buyers was 6 percent. Just over one-third of all buyers purchased using an FHA loan, which requires a 3.5 percent down payment. The Veteran’s Administration and USDA both offer zero-down loans, while the New Mexico Mortgage Finance Authority offers programs for low and moderate-income buyers that require a minimum cash investment of just $500.


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