Believe it or not, almost 80% of first-time homebuyers qualify for some form of down payment assistance, but shockingly, only 13% actually take advantage of it. If you're a first-time buyer in Brookings, South Dakota, or the surrounding area, this is a huge gap that you definitely want to close—and fast!
In this competitive housing market, every bit of financial assistance helps, and you don't want to leave any money on the table. Here's how you can amplify your down payment potential and make the most of the available resources.
Amplify Your Down Payment Potential
When it comes to buying your first home, down payments can feel overwhelming. But the good news is that there are numerous programs designed to help buyers like you. Many first-time buyers are surprised to learn that they may only need to put down as little as 3%—or even 0% if they qualify under certain loan programs, like those available to veterans.
And that’s not all. Down payment assistance programs, including grants and other financial resources, can make it even easier to meet your down payment goals. These programs are created specifically to help buyers reduce the financial burden upfront. If you don’t at least check what’s available, you could be missing out on opportunities to buy a home sooner than you thought possible.
For example, Brookings and South Dakota offer a variety of local, state, and federal assistance programs that could significantly reduce your out-of-pocket costs. By connecting with a trusted lender or real estate professional, you can explore what you qualify for. These resources could not only help with your down payment but also lower your monthly mortgage payment, reduce or avoid private mortgage insurance (PMI), and make your home purchase more affordable in the long run.
Don’t Let Headlines About Down Payments Scare You
You’ve probably seen headlines talking about rising down payments. A report from Redfin recently stated:
“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.”
That sounds pretty intimidating, right? But here’s the key thing to understand: just because the average down payment is rising, it doesn’t mean down payment requirements are going up.
What’s really happening is that current homeowners—people who are selling their homes and buying new ones—are using the equity they’ve built to make larger down payments. They’re doing this to lower their future monthly mortgage payments as a way to combat rising mortgage rates.
For first-time buyers, you don’t necessarily need to match those numbers. Programs that offer lower down payment options still exist, and many first-time buyers take advantage of them. 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 this down a bit more:
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A larger down payment lowers your monthly mortgage payment: Many buyers with the ability to make a larger down payment are doing so to reduce their long-term housing costs, especially in today’s high-rate environment.
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Current homeowners have more equity to leverage: Homeowners who have built up significant equity—thanks to price appreciation over the past several years—can put down more on their next home. This isn't necessarily the case for first-time buyers, who might not have equity but still have plenty of options to explore.
Why Working with a Pro Matters
So, how do you navigate all these options and find out which programs you qualify for? The best thing you can do is connect with a trusted lender or real estate agent. They have the expertise and resources to help you uncover all the down payment assistance opportunities that are out there, including those available specifically in Brookings, South Dakota, and the surrounding area.
By working with an expert, you’ll not only find the programs you may qualify for but also get a personalized roadmap for your homebuying journey. A knowledgeable professional can guide you through the process of applying for assistance and help you understand how to leverage these tools to maximize your buying power.
Bottom Line
The reality is, many first-time buyers don’t realize how much down payment assistance is available to them. If you’re looking to buy a home in Brookings, South Dakota, or the surrounding area, don’t let the fear of a hefty down payment stop you. There are resources available that can help you meet your goals sooner than you think.
Let’s connect today to explore your options. With the right guidance, you could be on your way to homeownership faster and with fewer hurdles than you ever imagined. Don’t leave money on the table—get in touch with Shane Andersen at the Brookings Home Team and start your journey toward owning your first home!
Posted by Shane Andersen on
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