More couples are looking for help in buying their first home rather than china patterns or other traditional wedding gifts.
A recent analysis by Zillow Home Loans and The Knot reveals an emerging trend among couples planning to tie the knot. More than ever, couples are opting to include "home funds" in their wedding registries, aiming to turn the dream of owning their first home into a reality. In the face of rising home prices, these young couples are finding innovative ways to navigate the financial challenges associated with this significant life milestone.
The Growing Trend:
According to The Knot, the inclusion of "home funds" in wedding registries has surged by 55% since 2018. Today, close to 20% of couples registered on The Knot are seeking assistance from their guests to contribute towards the down payment on their first home. Esther Lee, Deputy Editor of The Knot, notes that "home funds" have become the second most popular cash fund on the platform, following closely behind honeymoon funds.
"Amid rising interest rates and historic highs for down payments, this particular wedding contribution helps newlyweds reach another meaningful life milestone:
homeownership," said Lee.
Financial Hurdles for First-Time Home Buyers:
Recent research from Zillow paints a picture of the challenges faced by first-time homebuyers. Half of all homebuyers are now purchasing their first home, the highest share ever recorded by Zillow. Affordability remains a significant hurdle, with it taking nearly 12 years for a typical first-time buyer to save up for a down payment—three years longer than before the pandemic.
Amanda Pendleton, a personal finance expert at Zillow Home Loans, notes that while young couples may be redefining wedding conventions, the dream of homeownership remains steadfast. To bridge the gap, couples are turning to their wedding guests for support, including down payment funds in their registry.
Empowering Couples to Achieve Homeownership:
Pendleton encourages couples to work with qualified loan officers to understand their financial situation and explore available loan options. Many first-time buyers mistakenly believe a 20% down payment is mandatory, but some may qualify for as low as 3%, significantly altering their savings timeline and monthly payment.
Zillow data reveals that most first-time buyers put down between 10% and 19%. To further assist buyers, about one in three report receiving some form of grant toward their down payment, often from banks or credit unions. Bu
