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A new category being added to wedding registries: New Home Fund

November 8, 2023 | Posted by: Angela Robinson

A recent survey by Zillow Home Loans reveals that nearly 20% of couples are using their wedding registries to seek financial assistance for their first home purchase. This marks a 55% increase since 2018, with 'home funds' being one of the top cash fund choices on The Knot's registry website, just behind honeymoon funds. Rising interest rates and high down payment requirements are contributing to this trend.

Zillow's research also shows that 43% of first-time homebuyers in 2023 received gift funds from friends and family to help with their down payments. The share of first-time buyers is at its highest point in years, with costs and down payment savings periods increasing significantly, now taking nearly 12 years to save for a down payment, compared to nine years before the COVID-19 pandemic.

Monthly mortgage payments have more than doubled during this time, further adding to the financial challenge for first-time buyers. Zillow suggests that prospective homebuyers should work on improving their credit scores and consult with qualified loan officers to determine the best financial approach. Many first-time buyers can put down as little as 3%, significantly affecting their savings timeline and monthly payments.

Additionally, Zillow found that around one in three home buyers received grants toward their down payment, often from banks or credit unions. Buyers from diverse backgrounds were more likely to benefit from these grants, with 47% of them reporting receiving such assistance.

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