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How Much Money Do You Need to Buy Your First Home in the U.S.?

Tuesday, November 26, 2024 by Elizabeth Alvarado

For countless individuals, purchasing a home for the first time in the United States represents a cherished dream. Despite appearing to be a daunting challenge, there are accessible avenues for those venturing into the real estate market. Alejandra Vásquez, a real estate agent, shared insights with Univision Miami, outlining the amount of money a person should save to buy their first home in the U.S.

FHA Loans: A Gateway for First-Time Buyers

First-time homebuyers have the option to utilize a loan backed by the Federal Housing Administration (FHA). To start planning for such a purchase, individuals need to save 3.5% of the total property price. FHA loans are a popular choice for newcomers in the U.S. housing market because they offer government-backed advantages.

Some of the standout features of FHA loans include:

  • Less stringent requirements compared to other loan types.
  • Acceptance of lower credit scores.
  • Reduced down payments.
  • Lower closing costs.

Understanding the Total Costs

Beyond the initial 3.5%, buyers should also account for closing costs, which range from 4% to 5% of the property's value. According to Vásquez, "In total, you need around 7.5% of the home's value." For instance, if you're eyeing a house priced at $200,000, you should have at least $15,000 saved to meet this requirement.

Opportunities in Florida's Housing Market

Florida offers unique opportunities for first-time homebuyers, particularly in November, when many builders present enticing promotions as they close their fiscal year. Vásquez believes this period is ideal for exploring mortgage options and securing a home at a competitive price.

Additionally, first-time buyers benefit from not having to prove that their down payment funds are in their bank accounts. They can receive these funds as a "gift" from family or third parties, simplifying the process of gathering the necessary amount to purchase a home.

Navigating Your Path to Homeownership

For those dreaming of owning their first home in the U.S., consulting with real estate agents and industry experts is crucial. There are numerous ways to access loans, and current market opportunities can offer the momentum needed to achieve this goal. The key lies in planning, exploring available offers, and leveraging financing options that best suit your needs.

Always keep a realistic view of your ability to reach this milestone so that you can achieve it as soon as possible without compromising your family's future.

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