How Much Do You Need To Save for Your Down Payment in 2023?

Buying a home can be an exciting yet daunting experience. It’s important to take your time and research the process before you jump in. One of the most important steps is saving up for your down payment, but it’s not always as simple as just saving 20%. If you’re wondering how much you need to save for a down payment in 2023, read on.

20% isn’t Always the Typical Down Payment

The traditional rule of thumb is that you need to save up at least 20% of the purchase price of the home for a down payment. However, this isn’t always the case. In fact, the median down payment today is only 14%. And it’s even lower for first-time homebuyers at just 6%. So if you don’t have enough saved right now to make a 20% down payment, don't worry! There are other options available to help make buying a home more attainable.

Look For Homebuyer Assistance Programs

In Spokane, WA there are many different types of homebuyer assistance programs designed to help buyers get into their dream homes. The Washington State Housing Finance Commission (WSHFC) offers several loan options including conventional loans and mortgage credit certificates (MCC). Additionally, many lenders offer special programs like FHA loans or VA loans that may require lower down payments than conventional mortgages do. These programs are great resources for first-time buyers or those with limited income.

FHA Loan

If you're looking for a loan that requires a smaller down payment—as low as 3.5%, consider an FHA loan. This type of loan is insured by the Federal Housing Administration and can be used to purchase single-family homes as well as condos and manufactured housing units. An FHA loan also has less stringent credit requirements than conventional loans so it's often easier to qualify for an FHA loan than a traditional mortgage loan.

VA Loan

VA Loans are another option if you are eligible through veteran benefits or active service in the military reserves or National Guard unit. VA loans allow veterans to buy homes without needing a large cash investment upfront which makes them attractive options for those who qualify. Plus, interest rates on VA loans tend to be lower than conventional mortgage rates so they can save borrowers money over time through reduced monthly payments and overall cost savings over other types of financing options such as private mortgage insurance (PMI).

Researching all these options will help give you an idea of what kind of commitment will be needed when shopping around for your new home in Spokane WA - so start planning ahead today! If you need help getting started, we'll refer you to our partner lending company who can work with you to find the best loan option for your needs.