Saving up for a down payment can feel like a huge hurdle, especially when you hear that you will need 20% of the home’s price. But the truth is, you might not need to save as much as you think!
According to the National Association of Realtors (NAR) the median down payment is actually only 15%, and for first-time homebuyers it’s even lower at just 8%. There are also many resources available to help you with your down payment, including:
- FHA loans: These loans allow for a down payment as low as 3.5%.
- VA loans: These loans require no down payment for qualified veterans and active-duty service members.
- USDA loans: These loans are for rural areas and require no down payment for qualified borrowers.
- Down payment assistance programs: There are many programs available to help with down payments, including grants and forgivable loans.
Here in Idaho,the Idaho Housing and Finance Association (IHFA) offers a variety of down payment assistance programs to help first-time homebuyers and repeat homebuyers purchase a home. These programs can provide you with up to 10% of the sales price of the home to use towards the down payment and/or closing costs. Idahoans who use this program can contribute as little as 0.5% of the sales price of their own funds to the purchase. To be eligible for IHFA down payment assistance, you must meet certain income limits and complete a homebuyer education course. For more information about IHFA, visit their website: https://www.idahohousing.com/
Buying a home is a big decision, but it doesn’t have to be out of reach. With careful planning and the help of available resources, you can achieve your dream of homeownership.
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