The Down Payment Assistance You Didn’t Know About
Believe it or not, almost 80% of first-time homebuyers qualify for down payment assistance, but only 13% actually use it. And if you’re hoping to buy a home, this is a mission-critical gap to close – fast (see graph below):
Here’s what you need to know to maximize your down payment in today’s housing market in Cincinnati and Northern Kentucky.
Amplify Your Down Payment Potential in Cincinnati and Northern Kentucky
For first-time buyers in Cincinnati, Northern Kentucky, and the surrounding communities, it’s important to explore all the resources available to help with your down payment. Many of these resources can help you reach your goal faster than you might expect.
For example, there are loan options available in the Cincinnati and Northern Kentucky areas that require as little as 3% down, or even 0% for certain qualified borrowers, like Veterans. Don’t forget about the down payment assistance programs specific to this region, such as grants and other local opportunities, which can help cover your upfront costs.
If you’re interested in learning more about these programs and how they can benefit you in the Cincinnati or Northern Kentucky housing markets, connecting with a trusted local lender is key. Failing to explore these options could mean leaving money on the table and missing out on your dream home in the region. A higher down payment can reduce your monthly mortgage payment and even help avoid or reduce fees like private mortgage insurance.
Don’t Let News Headlines About Down Payments in Cincinnati and Northern Kentucky Scare You
You may have seen headlines about rising down payments across the country, and it’s true. According to Redfin:
“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 . . . This was the 12th consecutive month the median down payment rose year over year.”
But don’t let this discourage you from purchasing a home in Cincinnati or Northern Kentucky. These rising averages don’t mean that down payment requirements are increasing. Instead, it reflects buyers choosing to put more down to offset higher mortgage rates or leveraging equity from the sale of their previous homes. 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.”
Here’s why:
- A bigger down payment can lower your monthly mortgage payment: In today’s market, affordability is a challenge for many buyers in the Cincinnati and Northern Kentucky areas. Those who can make larger down payments are doing so to reduce their future housing costs.
- Buyers with existing homes have record equity: Homeowners in Cincinnati and Northern Kentucky who purchased a few years ago have seen significant price appreciation. They are now able to use that equity to make larger down payments on their next homes, giving them an advantage over first-time buyers.
Bottom Line for Buyers in Cincinnati and Northern Kentucky
What’s the best step to take? Reach out to a trusted lender in Cincinnati or Northern Kentucky to explore your options. They can help you understand where you stand today and guide you to the resources that may be available to you in these thriving local markets. Help is available – all you need to do is work with a local pro to make the most of it.