Appointments  |  Rates  |  Locations  |  Chat  |  JOIN NOW

“Does the American Dream no longer include homeownership?”

That was the headline of a July CNN Money post about a Pew Research study suggesting that home ownership “has become more elusive” since the financial crisis of 2008. Pew’s study found more households are headed by renters today than at any time since 1965. In kind, home ownership rates are low by historical standards, coming in at around 63%.

While the American Dream has no standard definition, on top of a white picket fence, a dog, and 2.8 kids, that definition most often includes owning a home. Yet, market conditions have led numerous commentators to the general conclusion that home ownership is no longer a requirement for our fellow citizens to enjoy the American Dream.

Supporting this unfortunate conclusion is a plethora of data showing that non-home owners often believe that home ownership is unaffordable. For example, a July Los Angeles Times article lamented “the challenge of coming up with a 20% mortgage down payment.” In June, even the money savvy CNBC.com noted, “Coming up with the cash to make a 20 percent down payment is becoming increasingly impractical,” all but implying that 20% cash down is required to buy a home.

Fortunately, both notions are simply false.

Home ownership is arguably the best financial move a member can make. A house is typically the most valuable single asset any American will own. Think about this: if you buy a $100,000 house and pay it off around the time you retire, you will have an asset you can sell in exchange for a $100,000 windfall of cash. Put another way, when you make your monthly mortgage payment, you are effectively paying yourself by building wealth as the balance of the loan declines.

This brings us to the down payment myth: Members, you do not need to put 20% cash down in order to buy a home. Most Americans, in fact, do not put down 20%. There are numerous loan programs available for members in a variety of circumstances.

A standard conventional mortgage will require the borrower to put down 5%, unless the borrower is considered a first-time homebuyer, in which case the down payment can be a mere 3%. Then there is an FHA mortgage, which requires a 3.5% down payment. If you are a qualifying veteran, VA mortgages have no down payment requirement; and if you are buying a home located in a qualifying rural area and meet a few other requirements, USDA offers a no money down rural development mortgage. Lastly, Day Air offers a no money down option known as AdvantEDGE Equity Builder.

In short, the American Dream should most definitely still include homeownership. Moreover, be assured that you can buy a home without putting 20% cash down. Rather than waiting to save a large down payment, act now and apply for a mortgage!

Checking Accounts

Premium Perks

Freedom Checking

CashBack Checking

Direct Deposit

More

Savings Accounts

Savings Accounts

Super Saver

Money Market

h

Certificates

HSA

Cards

Debit Card

Low Rate Credit Card

Rewards Credit Card

CU Rewards

Card Controls

Tools

Mobile Deposit

Online Banking

Pay Someone

eAlerts

Compare Rates

Vehicle Loans

Auto Loans

Refinance Your Car

Motorcycle & Jet Ski Loans

Boat & RV Loans

Mortgage & Home Loans

Mortgages

Refinance Your House

Home Equity Loans

Construction Loans

Personal

Personal Loans

,

StretchPay Loans

Student Loans

Credit Cards

Tools

Apply for a Loan

Pay a Loan

Online Bill Pay

Chat With Us

Financial Planning

Investments

i

Estate Planning

401(k) Rollover

Retirement Planning

Day Air Insurance

Auto Insurance

Home Insurance

Identity Theft Protection

Life Insurance

More Products & Services

RetireMed

Financial Counseling

Credit Reports

Reorder Checks

More

Online Banking

Online Banking

Online Bill Pay

Login to Online Banking

Mobile Banking

Mobile Banking

Mobile Deposit

Pay Someone

Text Banking

Tools

Apply for a Loan

Pay a Loan

eAlerts

Mobile Pay

Chat With Us

Accounts

Business Checking

Business Savings

Business Certificates

Cards

Business Debit Card

Business Credit Card

Loans

Commercial Loans

Term Loans

PPP Loans

Line of Credit

Services

Business Bill Pay

Tools

Online Business Banking

Login to Business Banking

Login to PIB MLO

Business Banking App

Join Day Air

Why Choose Day Air

Membership Eligibility

Annual Member Savings

Compare Rates

Join Day Air

Community

Community Involvement

Financial Education

Dayton VA Medical Center

Dayton Dragons

Contests & Sweepstakes

About

Press & News

Newsletters & Reports

Videos

Careers

Helpful Resources