Don’t Let Interest Rates or a Big Down Payment Stop You From Buying a Home

If you’ve been thinking about buying a home but feel like interest rates are too high or you don’t have enough saved for a down payment, don’t count yourself out just yet. There are more loan programs and assistance options available than many buyers realize.

We recently worked with a 22-year-old first-time homebuyer who was able to purchase his very first home despite the challenges many buyers are facing today. His story is a great reminder that homeownership may be more attainable than you think—it’s about understanding the options available to you.

You May Not Need 20% Down

One of the biggest misconceptions we hear from buyers is that they need to save 20% of the purchase price before they can buy a home. That simply isn't true.

Depending on your situation, there are loan programs that allow qualified buyers to purchase with a much smaller down payment. There may also be down payment assistance programs that can help reduce the amount of money you need upfront.

In some cases, lenders may even offer programs that contribute toward your closing costs or other upfront expenses. For example, one program discussed in our videos can contribute up to 2% of the purchase price for eligible buyers.

Don’t Let Outdated Advice Hold You Back

Real estate and mortgage programs are constantly changing. What was true five or ten years ago may not be true today.

That’s why it’s important to have a conversation with both a Realtor and a lender before deciding what you can afford to buy.

A lender can look at your individual financial situation and help you understand:

• What loan programs you may qualify for
• How much you may need for a down payment
• Whether you qualify for down payment assistance
• Potential lender or program contributions
• What your estimated monthly payment could look like
• How current interest rates affect your buying power

Talk to a Lender Before You Rule Yourself Out

The most important takeaway? Don’t assume you need 20% down, and don’t assume today’s interest rates automatically mean you can’t buy.

Talk with your lender to see if you qualify for down payment assistance and other available loan programs. You may have more options than you realize.

And if you're considering buying a home in the Indianapolis area, our team at Onward Realty Partners is here to help you understand the process from start to finish. We can connect you with trusted lending professionals and help you determine whether now could be the right time to make a move.

Ready to see what might be possible? Reach out to our team and let's start the conversation.

Loan programs, assistance amounts, eligibility requirements, interest rates, and lender contributions vary based on the buyer and program. Always consult a qualified lender for details specific to your situation.