Written by: Chelsea Spears, Farmers National Bank
When buying a home, how much money should you set aside for a down payment?
According to Karen Jindra, Mortgage Sales Manager for Farmers National Bank, “There are still a lot of people who think you need 20 percent down to buy or build a home, but that is not typically the case.”
In fact, recent reports have found the median home buyer in 2024 only puts down 13 percent when it comes time to buy a house.
“Having a 20 percent down payment can certainly be a wise decision, but there are other options if that amount just isn’t feasible for you,” Jindra said.
For example, there’s the Farmers Affordable Loan for low to moderate income levels and VA Loan Program for qualified veterans – both with 0 down. Or, other options include FHA Loans which only require 3.5 percent down in addition to a few conventional programs with just 3 percent needed.
One thing to keep in mind, however: If you don’t put 20 percent down on a house, you may have to pay Private Mortgage Insurance (PMI).
“There are pros and cons with each option. I always like my clients to know that there are alternatives out there. Having a 20 percent down payment is great but thinking you must have that amount is a myth,” Jindra said. “As a Mortgage Lender, we can help you find the right fit for you.”
