You Don't Need 20% Down: The Myth Costing Bay Area Buyers Years

Ask ten renters what it takes to buy a home and most give the same number: 20% down. On a typical Bay Area home that is close to $300,000 in cash, and it is the single most expensive myth in real estate. For most buyers, 20% down was never the rule. Here is the whole thing in about five minutes.

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• The myth vs the reality: the average first time buyer nationwide puts down about 9%, less than half the 20% figure most people assume they need.
• Your real options: Conventional 97, HomeReady, and Home Possible start at 3%, FHA at 3.5%, and VA and USDA can reach 0% down for eligible buyers.
• Local numbers: on a $1,000,000 Hayward home, 3% down is $30,000 versus $200,000 at 20%, the difference between buying this year and waiting years longer.
• Assistance most buyers never hear about: CalHFA and local, sometimes career specific, programs help with down payment and closing costs.

Read the full article, real numbers and a down payment slider →

Prepared by Harv Balu, REALTOR, GRI, CIPS, PSA, FTBS. REALTY EXPERTS®, DRE #02195792. Call or text 510 600 3425. Down payment figures are illustrative, not a loan offer. Equal Housing Opportunity.