A down payment is the upfront money that you need to invest when you purchase a home. This is paired with your mortgage to compleate the purchase of the home. The amount of money that you need to have available for the down payment is related to the type of mortgage that you are pre-approved for and the purchase price of the house.
Usually, you will need 5-20% of the sale price saved for a down payment if you would like a conventional loan. If you have less than 20% saved, you will need to pay mortgage insurance, referred to as PMI. This is calculated into your monthly mortgage payment amount.
If you are a first time home buyer, you may qualify for a Federal Home Administration (FHA) loan. These loans require only 3.5% of the sale price for a down payment. There are additional programs through Veteran's Affairs (VA) or the Department of Agriculture. You can read about each program and their eligibility, by clicking here:
Usually, you will need 5-20% of the sale price saved for a down payment if you would like a conventional loan. If you have less than 20% saved, you will need to pay mortgage insurance, referred to as PMI. This is calculated into your monthly mortgage payment amount.
If you are a first time home buyer, you may qualify for a Federal Home Administration (FHA) loan. These loans require only 3.5% of the sale price for a down payment. There are additional programs through Veteran's Affairs (VA) or the Department of Agriculture. You can read about each program and their eligibility, by clicking here: