Sorry we are experiencing system issues. Please try again.

Main Content

Do You Have Enough Money Saved For A Down Payment?

Do You Have Enough Money Saved for a Down Payment? | MyKCM

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 was $310,600.(These are the latest numbers available). NAR also indicates that:

“In 2019, the median down payment was 12 percent for all buyers, six percent for first-time buyers, and 16 percent for repeat buyers.” (See graph below):

Do You Have Enough Money Saved for a Down Payment? | MyKCMThat means if a qualified first-time buyer purchases a home at today’s median price, $310,600, with a 6% down payment, in reality, the down payment only amounts to $18,636. That’s nowhere near $62,600.

Knowing there are also programs like FHA where the down payment can be as low as 3.5% of the purchase price for a first-time buyer, that up-front cost could be significantly less – as little as $10,871 for the same home noted above. There are also other programs like USDA and loans for Veterans that waive down payment requirements.

The Point2Homes study also shares how much millennials have indicated they’ve saved for a down payment. As we can see in the graph below, 39% have already saved enough for a down payment on a median-priced home. Another 47% are close to reaching that goal, depending on the purchase price of the home.Do You Have Enough Money Saved for a Down Payment? | MyKCMUnfortunately, the lack of knowledge about the homebuying process is keeping many motivated first-time buyers on the sidelines. That’s why it’s important to contact a local real estate professional to understand the requirements in your local area if you want to buy a home. A trusted agent and your lender can guide you through the process.

Bottom Line

Be careful not to let big myths about homebuying keep you and your family out of the housing market. Let’s connect to discuss your options today.

×

Social Reviews

Coldwell Banker Vanguard Realty, Erin E. King MBA IconColdwell Banker Vanguard Realty, Erin E. King MBA

3610 Saint Johns Avenue Suite #103, Jacksonville

5.0 8 reviews

  • Avatar SEO Services ★★★★★ a month ago
    Erin King continues to impress me with his knowledge of Macro situations impacting local real estate and interest rates, as well as micro trends in the Jacksonville, Florida real estate market. Whether a historic home in districts such … More as Avondale, Ortega, or Riverdale, or surrounding neighborhoods, Erin and Coldwell Banker Vanguard Realty is an Artisan choice where he is a true asset and team member and most important, results oriented.
  • Avatar Nick Freeman ★★★★★ a year ago
    Erin was excellent! He made the home buying process for my wife and I simple and stress free. His expertise and knowledge of the historic homes of Jacksonville allowed us to feel confident in our decision to buy a historic home. We interacted … More with multiple realtors prior to meeting Erin and I must say he was by far the most impressive. His authenticity and genuine interest in findings us the right home really set him apart from others. I highly recommend working with Erin King.
  • Avatar lindsey kilbride ★★★★★ a year ago
    Talk about a stress-free experience purchasing my first home! Having Erin King as my realtor was the best decision. He knows his stuff and helped me get a great price on my dream first home in a seller’s market. He did a tremendous job … More negotiating. There’s no pressure with him and he’s not going to let a buyer settle for a home that isn’t the right fit. There were no surprises throughout the closing process as he keeps his buyers in the loop. Even when a minor issue came up with the appraisal, he called me with his plan to remedy the problem and it was fixed that week. Erin truly looks out for his clients, alerting of any red flags but is reassuring about bumps during the process that can be easily handled — that’s why his wealth of knowledge and experience is such an asset, he’s seen it all. A bonus: he’s really nice and funny! Great person to work with. I highly recommend him.
  • Avatar life changer ministry ★★★★★ a year ago
    Erin is by far the best realtor I worked with. I really enjoyed working with him. He has a wealth of knowledge about the housing market as well as home inspection. He is also a great negotiator. Was able to close on my house in 28 day … More and i had zero sleepless night. Didn't have to worry about a thing. Everytime I had a question he always had an answer and always returned my calls promptly. Erin is my realtor for life. I Will be referring Erin to all my friends and family members.
  • Avatar Kerry Fitzgerald ★★★★★ a year ago
    My experience working with Erin was by far the best I have ever encountered with a realtor. He quickly identified important aspects that I wanted in a home and was able to narrow down key properties to consider. In addition Erin’s displayed … More strong knowhow through his extensive knowledge of the areas and market I was considering. Balancing pros/cons and keeping me well informed at every step. By leveraging his strong listen skills and attention to detail we found my dream home in a very short time. Erin continued to support me throughout the sales process and well after to ensure my expectations were met and exceeded. I would absolutely recommend Erin to any of my colleagues, friends and family on future home purchases.
  • Avatar Roberto Vieira ★★★★★ a year ago
    This was my first time buying a house and Erin made the entire process seamless. His knowledge and attitude allowed me to decide on a house with confidence and the fact that he is on your corner during the entire process, does make you … More very at ease. Buying a first house didn't have to be scary. Who knew!

Coldwell Banker Vanguard Realty - Erin E King MBA REALTOR
5.0
Based on 4 reviews
powered by Facebook
Alpha Foundations
Alpha Foundations
16 hours ago
The team showed up when I was told they would to encapsulate the crawlspace of my 1924 bungalow in Avondale. Like many folks with above grade homes our home suffered from very high humidity levels. The Foreman was informative and professional as well as the rest of the team. They began work immediately and graciously answered every single one of my questions (I ask a lot of questions). They worked, the first day, until dark, and returned very early the next morning to finish up. Here we are just 24 hours later and my home feels, already, more comfortable than I can remember. The clean space crawl space, although a big investment, is worth every single penny. Their 25 year warranty, and emergency call number if something happens is very reassuring they will be there for me down the road if I need them.
The Happy Grilled Cheese
The Happy Grilled Cheese
1 day ago
The bricks and mortar version is just as good as the truck itself. Best grilled cheeses!!! Yum!
First Watch - Riverside
First Watch - Riverside
1 month ago
For being less than thirty days old, the location is performing well above par. We were greeted the moment we hit the door, we sat at the bar top, and received excellent service. The food was delivered promptly considering the volume. Excellent work all around, keep it up and welcome to Riverside!!!
Good Dough
Good Dough
2 months ago
Excellent first experience!! We will definitely be back.
David M.
David M.
2020-04-14 07:12:21
My wife and I worked with Erin when he was at Bloom Realty to buy our first home in 2018. We had a great experience. As first-time homebuyers from out of...
Simone J.
Simone J.
2020-03-13 11:57:13
Erin is the best! If you are looking for someone who tells you like it is, and points you towards what you want and actually needs, he is the realtor for...