{"id":7814,"date":"2019-10-23T21:04:14","date_gmt":"2019-10-23T21:04:14","guid":{"rendered":"https:\/\/chenoafund.org\/?p=7814"},"modified":"2024-07-30T14:39:41","modified_gmt":"2024-07-30T14:39:41","slug":"debunking-homebuyer-down-payment-myths","status":"publish","type":"post","link":"https:\/\/chenoafund.org\/debunking-homebuyer-down-payment-myths\/","title":{"rendered":"Debunking Homebuyer Down Payment Myths"},"content":{"rendered":"

Of all the barriers blocking people from becoming homeowners, one stands out above the rest: the down payment. For many young or low-to-median-income Americans, the prospect of accumulating a big chunk of cash to put down on a home seems virtually impossible \u2013 especially if they lack family members able to give or loan them some or all of the funds.<\/p>\n

Surveys consistently show that most renters cite \u201caffording the down payment\u201d as a key obstacle to homeownership, with two out of three consumers saying it\u2019s either somewhat difficult or very difficult to save the amount required.<\/p>\n

Typically, these sentiments are the product of confusion over the down payment. One 2018 report by The Urban Institute found that nearly one in three people surveyed said they believe lenders expect borrowers to put down 20 percent. In fact, about six in ten homebuyers finance their purchase using a down payment of six percent or less.<\/p>\n

Download PDF: CF1-DeBunkMyths-Infographic-homebuyer-efile_1019<\/a><\/p>\n

\"Debunking<\/p>\n

On top of such misperceptions regarding down payment requirements, many would-be homebuyers are unaware that help is available. Down payment assistance, commonly called DPA, is accessible to a wide range of buyers, and it\u2019s an increasingly popular tool allowing families to break into the homeowner ranks.<\/p>\n

Recent data show that there are more than 2,100 active DPA programs in the U.S., at the local, state and national levels. Using DPA can dramatically reduce the amount a homebuyer must put down, and in some cases, borrowers can draw on multiple assistance programs to further reduce their up-front costs.<\/p>\n

Who is eligible for DPA? That varies, but the Chenoa Fund and other programs typically provide help for a variety of loan types and to buyers with all levels of income and credit scores. Here are a few criteria used by many DPA programs:<\/p>\n