Most buyers don’t know to look for down payment assistance that could help them save on their down payment, closing costs or provide tax savings. There are programs in every market designed to help otherwise qualified buyers overcome the down payment hurdle.
It’s also true that buyers are overestimating the down payment needed. Even this Apartment List study notes the difficulty saving for 20 percent down on a median priced home. But, 20 percent down is just a myth. In fact, the average down payment for a first-time homebuyer is only around 6 percent.
Instead, let mom and dad keep their retirement savings intact and do your research on the down payment help available in your market. There are even programs designed to help graduates with student loan debt.