Don’t Let The Down Payment Scare You Off From Buying Your First Utah Home
Millennials and Zoomers in Utah – are you looking to get out of rentals, and move into a house of your very own? If so, it could be easier than you realize! There are a lot of myths involving down payments that often hold people back from chasing their dream of homeownership. Plus, organizations exist that provide down payment assistance in Utah to first time home buyers, making the process even easier.
In this article, we wanted to clear up one of the biggest misconceptions about your home’s down payment, and show how buying a home could be easier than you think!
Don’t Be Tricked By The “Twenty Percent Down” Myth!
There is a certain piece of “conventional wisdom” that you’ll still hear, mostly from Boomers and other older people. This claims that your down payment for a home has to be twenty percent of the cost.
The twenty percent story is false. It hasn’t been true in a very long time, but you can still hear people parroting it from time to time. In fact, according to the National Association of Realtors (NAR), the median down payment is only around seven percent of the home’s value, as of 2018.
Now, it is true that paying a larger amount upfront can be helpful if you can afford it. A large down payment will reduce your ongoing payments, and potentially help you avoid other expenses such as mortgage insurance. However, 20% is far from a requirement, and it shouldn’t scare you away from homeownership.
Plus, if you’re concerned about affording even a lower down payment, options still exist – such as down payment assistance grants here in Utah!
Home Savings Fund Can Help You Achieve Your Dream
Home Savings Fund is a registered 501(c)(3) non-profit organization that was founded specifically to help young first-time homebuyers in Utah. We provide a funds matching program, and – if you qualify – you can receive up to $7,500 from us to assist with paying your down payment. And this is a grant, not a loan. It wouldn’t need to be paid back.
How does it work? If you qualify, you’ll pay funds into a savings account to demonstrate your ability to make regular payments, and we match the funds you put in. You’ll also need to attend some financial planning classes, to help prepare you.
If this sounds like something that could help you own a Utah home, please contact us to learn more!