Buyers Ask: How much down payment will I need?

The amount of down payment you will need to buy a home depends on the type of loan you get and your credit score.

For conventional loans, the minimum down payment is typically 20%. However, some lenders may allow down payments as low as 3%. For FHA loans, the minimum down payment is 3.5%. For USDA loans, there is no down payment required.

If you have a lower credit score, you may need to make a larger down payment. This is because lenders view borrowers with lower credit scores as being more of a risk.

Here is a table that summarizes the down payment requirements for different types of loans:

Loan type

Minimum down payment

Conventional loan

3%

FHA loan

3.5%

USDA loan

0%

It is important to note that making a larger down payment can have several benefits. First, it can help you qualify for a lower interest rate. Second, it can reduce your monthly mortgage payments. Third, it can give you more equity in your home.

However, if you are not able to make a 20% down payment, don't let that discourage you from buying a home. There are still many options available to you.

Here are some tips for saving for a down payment:

  • Create a budget and set a savings goal.
  • Automate your savings by setting up a recurring transfer from your checking account to your savings account each month.
  • Cut back on unnecessary expenses.
  • Get a side hustle.
  • Consider asking for help from family or friends.

Buying a home is a big decision, but it can be a very rewarding experience. By carefully planning and saving for your down payment, you can make your dream of homeownership a reality.

 

 

  1. 1
  2. 2
  3. 3

What's Your Home Really Worth?

You’re one step away from finding out the value of your property at:

By providing Adam Baldwin your contact information, you acknowledge and agree to our Privacy Policy and consent to receiving marketing communications, including through automated calls, texts, and emails, some of which may use artificial or prerecorded voices. This consent isn’t necessary for purchasing any products or services and you may opt out at any time. To opt out from texts, you can reply, ‘stop’ at any time. To opt out from emails, you can click on the unsubscribe link in the emails. Message and data rates may apply.

Thank You!

We’re going to prepare a customized report with information on the value of your home.
Browse Properties