Down Payment Protection – A Key Consideration to Protect Investments in Homeownership

Posted July 30, 2018 in Special Features

EHL Sponsored Content 7-29 Photo, Clark County WA real estate agent

Conventional wisdom says that if you plan to purchase a home you should expect to stay in one place for at least the next fi ve to seven years. This, hopefully, helps you gain the advantages of building equity as the home increases in value.

This idea is quickly turning on its head as homebuyer preferences have changed over recent years. While many homebuyers expect to own a home for 30+ years, it will not likely be in the same home for all of those years. Instead, trends suggest homebuyers expect to move within seven years of purchasing a home and they expect to change jobs every three years.

If a homeowner moves in the first two to seven years after purchasing a home, home values may not appreciate since it’s still close to the purchase of the home. Additionally, if the equity hasn’t appreciated and home values are down, the down payment may be lost with the sale of the home.

Furthermore, for many first-time homebuyers, pulling together a down payment is a big commitment. It can take years or even decades to save enough for a down payment, and it’s often a significant portion of a homebuyer’s investment. This coupled with concerns about which way the real estate market will turn in the next few years, can add additional pressure to the homebuying process.

To protect their hard-earned investment and alleviate uncertainty, homebuyers might consider working with a lender that offers a down payment protection product. Down payment protection is a type of insurance designed to protect a homebuyer’s down payment against changes in market prices. It allows them the freedom and flexibility to move when they need, no matter if it’s a new job or growing family. All with the confidence that their down payment is protected should they need to sell their home at a loss due to market conditions.

Typically, down payment protection insurance is added as part of a homebuyer’s mortgage. Should they sell between two to seven years of homeownership and sustain a loss, a portion of their down payment may be eligible for reimbursement to use towards the purchase of their next home. As John Lennon famously said in song, “Life is what happens to you while you’re busing making other plans.” The vision of staying in one home for 30 or more years is a wonderful vision yet not likely to be the reality for homebuyers in today’s housing market.

Innovative programs like down payment protection is just one way consumers can protect their hard-earned investment. Asking a lender if they offer down payment protection insurance during a purchase could help homebuyers save in the long run. It provides peace of mind that no matter which way the
market turns, homeowners can still enjoy all the benefits of homeownership while chasing after the best of life’s dreams, no matter where those dreams take them.

“Evergreen +Plus” is down payment protection provided exclusively by PVI Agency, LLC dba
ValueInsured a licensed agency in all 50 states and the District of Columbia. PVI Agency is not
affi liated in any manner with Evergreen Home Loans. Terms and conditions of the insurance
described herein as Evergreen +Plus, including pricing, are determined solely by the issuer
of the coverage, PVI Agency, LLC dba ValueInsured. Approval of your mortgage loan from
Evergreen Home Loans will not be conditioned upon your obtaining down payment protection.
Certain loan products do not qualify for Evergreen +Plus.

Sponsored by: Leslie Girard – NMLS 58461,
Branch Manager & Sr Loan Officer –
The Girard Team at Evergreen Home Loans.
360-254-2610 |

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