Find Out Why More Than Half of Buyers are Wrong About Down Payments

True or false: if you’re buying a home, you need to have at least a 20% down payment? If you answered true, you aren’t alone—so did 62% of Americans.

But in reality, that couldn’t be further from the truth—and you don’t have put off your home-buying dreams just because you can’t come up with 20% down!

While a 20% down payment will help you avoid private mortgage insurance (PMI), it isn’t some sort of home-buying hurdle that you must clear in order to buy. In fact, it’s far from the most common amount that U.S. buyers put down!

Here’s the truth about down payments—and why you shouldn’t let that 20% number prevent you from reaching your buying goals.

The Truth about Down Payments

A piggy bank standing against a white background.

According to NerdWallet’s 2019 Home Buyer Report, around 6 in 10 Americans think you need a 20% down payment in order to buy a house. Because of this, they also tend to think that it takes several years to come up with the necessary funds for buying.

Unfortunately, this way of thinking unnecessarily postpones plenty of people’s home-buying dreams!

The truth? The most common down payment amount—put forward by around 32% of buyers—was just 5% or less. Put that in terms of concrete amounts, and it translates to just $7,500 on a $150,000 home or $15,000 on a $300,000 home.

Other Common Down Payment Amounts

A single dollar bill sitting on a wooden surface.

While 5% or less is the most common down payment amount, it’s still just one of the many options that buyers choose. Here’s how the rest of the numbers break down:

  • 16% of buyers put down 6 – 10%
  • 23% of buyers put down 11 – 20%
  • 18% of buyers put down more than 20%
  • 10% of buyers bought their home outright

A 20% down payment is a great goal, but you don’t have to feel locked into that amount! Instead, consider how much money you’d feel comfortable with putting down, then work from there.

Buyers are Optimistic

A woman packing up her home and writing on a cardboard box.

Despite prevailing misconceptions about down payments, buyers are still feeling optimistic about the market. Around 42% of Americans feel better about their home-buying prospects this year, which is up almost 20% from last year.

Additionally, 44% of people say that the current economic and political conditions make them more likely to buy in the next year, which is around a 10% increase from last year.

Long story short? Now’s a great time to buy!

Find Your Dream Triangle Home

Buying a home is major step, so it’s important that you have trusted and experienced professionals on your side. At Linda Craft & Team REALTORS®, we have over 300 years of combined real estate experience, making us well-equipped to provide you with everything you need to find home-buying success.

Take some time to explore our resources for home-buyers, learn a little more about what our past clients have to say, and use our specialized search tool to narrow down your options. Once you’re ready to get started, we’d love to talk details!

The Top 5 Best Things about Living in Heritage at Wake Forest

Wake Forest’s Heritage neighborhood turns 10 years old this year. To celebrate, we are counting down the top 5 best parts of residential life in this highly desirable neighborhood.

If you’re relocating to the Wake Forest area, consider buying a home in Heritage and find out what makes life so wonderful there.

Highlights of Living in Wake Forest’s Heritage Neighborhood

As a master-planned community, Heritage is much more than a collection of attractive homes and well-groomed streetscapes. It serves as a foundation for your Wake Forest lifestyle, not to mention a friendly setting for living near your welcoming neighbors. Here are the best aspects of living in Heritage.

5.  So Much to Do Nearby

Whether you’re working or playing near Heritage, take comfort from the fact that everything is within easy reach. There are many businesses nearby that provide the option for employment close to home, along with fun places to shop and dine.

Enjoy your pick of restaurants offering casual carry-out, family dine-in, sports pub settings and upscale fine dining.

Greenway parks, a soccer complex and even neighborhood schools add to the long list of amenities that Heritage at Wake Forest offers.

4. Good Southern Living

Just close enough to the capital city of Raleigh and the opportunity-rich Triangle, yet just far enough to ensure families a generous amount of the green space, fresh air, and blue sky, Heritage was destined to succeed in Wake Forest.

Twice in its first ten years, Heritage was voted North Carolina’s Master Planned Community of the Year. The atmosphere is much like one might expect in a friendly village from days gone by, only this village is as thoroughly modern as it is diverse and attentive to lifestyles of the 21st century.

3. Everything in One Place

Gone are the days when you had to drive out of your way to buy groceries, pick up a pizza, send in your dry cleaning and take your pet for a check-up.

Heritage is conveniently located to just about everything, and it offers residents the ease of running daily errands literally down the block or just around the corner. Easily find banks, package shipping stores, schools, medial care facilities and specialty shops close to your home in Heritage.

2. Unlimited Family Fun

Heritage Wake Forest offers enough amenities to its residents to keep everyone entertained for years to come.

green golf courseWant to enjoy a round of golf? The beautifully designed Heritage Golf Club winds throughout the neighborhood. It’s a semi-private golf club with an 18-hole course, full practice facility, PGA staffed pro shop and stunning clubhouse with an array of amenities.

The Heritage Swim & Tennis Club offers even more fun. The private neighborhood club offers two neighborhood pool complexes, the Heritage Lake Pool and the Heritage View Pool, offering these fantastic features for everyone to enjoy:

  • Junior Olympic-sized pool
  • 103-foot waterslide
  • spacious sun deck
  • full-service grill
  • lazy river
  • beach entry
  • water dome
  • 2 lighted tennis courts

1. Beautiful Homes for Sale

The wide variety of home plans and architectural styles in Heritage allows you to choose a design that matches you with your dream home. But of course you don’t just get a magnificent house when you live in Heritage — you get the amenities and location to go along with it.

Discover Your Dream Home in Heritage at Wake Forest

Don’t wait another day to fulfill your heart’s desire at Heritage Wake Forest! Contact us at 919-235-0007 to schedule a showing of a home for sale in Heritage or request a tour of the neighborhood and see for yourself what life is like in Heritage at Wake Forest.