When you consider how much home prices here in Frisco, TX, and the surrounding communities, have risen over the past few years, and with mortgage rates remaining stubbornly high, many potential homebuyers have been left wondering if they will ever be able to afford to buy a home.

One of the biggest misconceptions when it comes to buying a home is about the down payment and the belief you must put 20% down. That isn’t necessarily the case as the National Association of Realtors (NAR) notes:

One of the biggest misconceptions among housing consumers is what the typical down payment is and what amount is needed to enter homeownership.

A recent survey by Freddie Mac found:

….nearly a third or perspective homebuyers think they need a down payment of 20% or more to buy a home. This myth remains one of the largest perceived barriers to achieving homeownership.

The truth is unless there are specific requirements based on the type of property you are buying or the type of loan you are obtaining you typically are not required to put 20% down.

Conventional loans are available that allow you to put as little as 3% down and FHA loans only require 3.5% down.

With that in mind, your dream of homeownership could be closer than you think.

According to NAR, the median down payment for first-time homebuyers is 6% and is only 14% for all homebuyers.

Knowing Your Options

It’s important to understand and know all of your options before embarking on your homebuying journey.

Another misconception is that down payment assistance programs are only available for first-time homebuyers. While many options do exist specifically for first-time buyers, there are programs available for repeat buyers as well.

Down Payment Resource has information on more than 2,000 homebuyer assistance programs across the country. That same resource says:

You don’t have to be a first-time buyer. Over 38% of all programs are for repeat homebuyers who have owned a home in the last 3 years.

Connecting with a lender early in the process is a critical first step to understanding what options are available to you. In addition to understanding your options, your lender can help you create a home-buying budget that will enable you to have a complete understanding of all the costs associated with buying a home.

If you don’t have a lender already, I can highly recommend Denise Donoghue and The Mortgage Nerds. Denise and her team are well-versed on all of the options available to you here in the Frisco market.

Bottom Line

While buying a home in Frisco is certainly more expensive now than it was a few years ago, rent has also increased substantially. Either way, you're paying a mortgage, the question is will it be yours, or your landlord’s?

Let’s Schedule a Call to see if now is the right time for you to consider buying a home in Frisco or the surrounding area.