David Deem 714-997-3486 Dave@DeemTeam.com   There’s a common misconception that, as a homebuyer, you need to come up with 20% of the total sale price for your down payment. In fact, a recent survey by  Lending Tree  asks what is keeping consumers from purchasing a home.  For over half of those surveyed, the ability to afford a down payment is the biggest hurdle. That may be because those individuals assume a 20% down payment is necessary. While putting more money down if you’re able can benefit buyers, putting 20% down is not mandatory. As  Freddie Mac  puts it: “ The most damaging down payment myth—since it stops the homebuying process before it can start— is the belief that 20% is necessary .” If saving that much money sounds overwhelming, you might be ready to give up on the dream of homeownership before you even begin – but you don’t have to. According to the  Profile of Home Buyers and Sellers  from the  National Associati...

  David Deem 714-997-3486 Dave@DeemTeam.com One of the biggest hurdles homebuyers face is saving for a down payment. As you’re budgeting and planning for your home purchase, you’ll want to understand how much you’ll need to put down and how long it will take you to get there. The process may actually move faster than you think. Using  data  from the  U.S. Department of Housing and Urban Development  (HUD) and  Apartment List ,  we can estimate how long it might take someone earning the median income and paying the median rent to save up for a down payment on a median-priced home. Since saving for a down payment can be a great time to practice budgeting for housing costs, this estimate also uses the  concept  that a household should not pay more than 28% of their total income on monthly housing expenses. According to the data, the national average for the time it would take to save for a 10% down payment is right around two and a half years (2...

David Deem 714-997-3486 Dave@DeemTeam.com What Are the Benefits of a 20% Down Payment? If you’re thinking of buying a home this year, you may be wondering how much money you  need  to come up with for your down payment. Many people may think it’s 20% of the loan to secure a mortgage. While there are plenty of lower down payment options available for qualified buyers who don’t want to put 20% down, it’s important to understand how a larger down payment can have great benefits too. The truth is, there are many  programs available  that allow you to put down as little as 3.5%, which can be a huge benefit to those who want to purchase a home sooner rather than later. Those who have served our country may also qualify for a Veterans Affairs Home Loan ( VA ) and may not need a  down payment . These programs have really cut down the savings time for many potential buyers, enabling them to start building family wealth sooner. Here are four reasons why putting 20% down i...

  David Deem 714-997-3486 Dave@DeemTeam.com Is the idea of saving for a down payment holding you back from buying a home right now? You may be eager to take advantage of today’s low mortgage rates, but the thought of needing a large down payment might make you want to pump the brakes. Today, there’s still a common myth that you have to come up with 20% of the total sale price for your down payment. This means people who could buy a home may be putting their plans on hold because they don’t have that much saved yet. The reality is, whether you’re looking for your first home or you’ve purchased one before,  you   most likely   don’t need to put 20% down . Here’s why. According to  Freddie Mac : “The most damaging down payment myth—since it stops the homebuying process before it can start—is the belief that 20% is necessary.” If saving that much money sounds daunting, potential homebuyers might give up on the dream of homeownership before they even begin ...

  David Deem 714-997-3486 Dave@DeemTeam.com Many people are eager to buy a home right now while  affordability  continues to be a highlight of the current housing market. However, a recent  survey  by  Sparks Research  shows that 20% of first-time homebuyers cite a lack of financial education as a barrier to homeownership. This is definitely understandable. If you don’t feel comfortable with the financial process of buying a home, it’s hard to make a confident decision. In fact, four in five homebuyers say they need help to understand what they can even afford in the first place. This is why finding the right professionals to help you through the process is so important. On top of that, the same survey reports over two-thirds of prospective homebuyers believe they’ll need assistance to save enough for a  down payment . What they may not realize is that there are a lot of down payment assistance programs at the state and regional levels, and many o...

David Deem 714-997-3486 Dave@DeemTeam.com One of the biggest misconceptions for first-time homebuyers is how much you’ll need to save for a down payment. Contrary to popular belief,  you don’t always have to put 20% down to buy a house . Here’s how it breaks down. A recent survey by  Point2Homes   mentions  that 74% of millennials (ages 25-40) say they’re interested in purchasing a home over the next 12 months. The study notes, “ 88% say they have significantly less savings than the average national down payment amount, which is $62,600 .” Thankfully, $62,600 is  not the amount every buyer needs for a down payment  in the United States. There are many different options available, especially for first-time homebuyers (millennial or not). That amount can also be significantly less, depending on the purchase price of the house. According to the  National Association of Realtors  (NAR), “ The median existing-home price for all housing types in August ...

David Deem 714-997-3486 Dave@DeemTeam.com Saving up for a down payment is one of the biggest challenges for aspiring first-time homebuyers. A typical down payment can range from 5 to 20 percent of a home’s purchase price–that’s no small chunk of change. Although it might seem overwhelming to rack up thousands of dollars, practicing some discipline and using the right tactics can help you pull it off, making it possible for you to go from renter to proud homeowner. To help you save for a down payment, consider these tips from the American Bankers Association: Develop a Budget and Timeline.   Start by determining how much you’ll need for a down payment. Create a budget and calculate how much you can realistically save each month–that’ll help you gauge when you’ll be ready to transition from renter to homeowner. Establish a Separate Savings Account.  Set up a separate savings account exclusively for your down payment, and make your monthly contributions automatic. By keeping this...