The dream of owning a home is central to the American Dream. Real estate represents much more than an investment, it is also part of our identity. However, in the current market, with inflation, and mortgage rate news, the prospect of homeowning and saving is often accompanied apprehension at figuring out a substantial down payment. It is important to debunk the myth that 20% down payments are the only way to own a home. Our government realizes how central homeowning is to the success of populations and generations and thus have many loan options and assistance programs, to make purchasing a home, easier than you think. Here are some of the ways to rethink downpayments, your first step towards homeowning.

20% Down Myth

20% is what people think most are putting towards a down payment. But currently, most people are putting between 10%-15% down and first time homebuyers are putting 3%- 8% down. This is a huge variation and deviation from the myth of 20%. It should be noted that in more competitive markets, some are paying cash or putting a larger amount down to avoid higher interest rates or mortgage insurance.

Diverse Loan Options:

You don't need to drain your savings, and you should not,  to secure a home. Many first time homebuyers worry that all of their savings must go towards buying a home. In 2024, there are various loan options which accommodate first time home buyers and others who might encounter issues with provided a substantial down payment. In some instances a down payment as little as 3% are are available to buyers. This opens the door to homeownership for many. These rates may be secured through FHA, VA, and USDA loans.

Down Payment Assistance Programs:

Assistance programs are not only offered by the government. There are non profits and funding programs to assist in homeowning depending on your career or ethnicity and circumstance. They are not straight foward lending programs and are available in various forms, ranging from to subsidies for eligible buyers. Some of these include direct funds to teachers, first time homebuyers in Latino communities, African American homebuyers, and Native Americans. There are many programs that also assist with financial literacy and resources for more grants and funds.

Accessing the Right Resources:

Navigating which programs you apply for and which assistance will help you build a down payment requires comprehensive knowledge of the political and lending landscape. Beyond financial literacy programs and nonprofit lending and other assistance programs, there are many ways that those looking to own a home can make the vision a reality. This is where a realtor who understands where to look for these resources comes into play.


Homeownership assistance has become more inclusive and accessible, to those who have access to the information. A substantial down payment is not an insurmountable hurdle, and buyers should consider first reaching out to chat with the Realtors at My NC Homes. We've been helping buyers and sellers realize their goals in real estate for over 60 years and understands how lenders and assistance programs help first-time homebuyers and those looking to move up. Contact us today to see what you might qualify for.

Posted by Larry Tollen on

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