Hey there, future homeowners!
If you’re dreaming of owning a home, you’ve probably asked yourself: “How much do I really need for a down payment?” The truth is, the answer isn’t one-size-fits-all—it depends on your budget, loan type, and financial goals. Let’s break it down together!
Do I Need 20% Down? Not Always!
You may have heard that you must put 20% down on a home. While that’s a great goal (and helps you avoid private mortgage insurance—PMI), it’s not a requirement. Many buyers secure a home with far less upfront!
💰 Conventional Loans – As little as 3%-5% down, depending on lender guidelines.
🏡 FHA Loans – Just 3.5% down with a credit score of 580 or higher.
🎖️ VA & USDA Loans – $0 down for eligible military members and rural homebuyers!
How Much Should You Save?
While loan programs allow smaller down payments, putting more down can mean:
✅ Lower monthly payments
✅ More home equity from day one
✅ Better loan terms & lower interest rates
But don’t worry if 20% feels out of reach—many first-time buyers start with less and still achieve homeownership success!
Other Costs to Consider
Down payment isn’t the only upfront cost. Be prepared for:
🔹 Closing costs (typically 2%-5% of the home price)
🔹 Moving expenses & home setup
🔹 Emergency savings (because life happens!)
Let’s Get You Home!
The best way to know how much you need? Talk to a lender and get pre-approved. Every buyer’s situation is unique, and a lender can help you explore the best options for your budget.
Thinking about buying a home soon? Let’s chat and make a game plan! Drop a comment or message me—I’m here to help.