Having trouble coming up with down payment for a Maui home as a first-time buyer? A recent report has revealed that U.S. home buyers can save an average of $17,766 through down payment assistance programs. According to RealtyTrac and Down Payment Resource, data was collected from no less than 2,477 such programs throughout the nation, along with public records on sales.
These programs could be very helpful to those residents who are struggling to compete with off-island buyers to be able to afford a home on Maui. According to the report, while using the U.S. median home price, the savings includes $5,965 on the down payment and 11,801 in savings on monthly house payments over the life of the loan. However, the savings depend on numerous factors, many of which are county specific.
Using public record sales data for single-family homes and condos, the study covered median-priced real estate in 513 counties throughout the nation. Interestingly, they found that Kauai County came up as No. 1 in the U.S. for the most money saved through these programs with a total of $80,148 saved on average over the life of the loan. The next highest savings came up in Placer County, California, with $78,539. San Francisco County came in third with $77,411 saved on average.
Some programs involve what they call a “silent” second mortgage that is not disclosed to the original lender, with help directly from the seller of the property in order to close the sale. The following statement from Daren Blomquist, senior vice president at RealtyTrac, sums up the challenges that have given rise to these programs.
“Saving for a down payment can be difficult for prospective first-time home buyers given the absence of substantial wage growth in recent years combined with the burden of student loan debt many are struggling under. Even just a 3 percent down payment requires 14 percent of annual wages on average across the 513 counties we analyzed, and in 67 counties a 3 percent down payment requires more than one-fifth of annual wages.”
If you’re a first-time home buyer and you need a little help with your down payment, these programs are worth looking into in case they apply to your situation. As for your Maui real estate search, we’re happy to assist you in any way we can. You’ll find our contact information at the bottom of the page. Mahalo!
