Why do I need a Down Payment to buy a home?
Coming up with enough cash for a down payment to buy a house can be the single biggest roadblock for prospective home buyers. But how much of a down payment do you really need? That depends on the type of loan, your lender and your priorities.
When applying for a mortgage to buy a house, the down payment is your contribution toward the purchase and represents your initial ownership stake in the home. The mortgage lender provides the rest of the money to buy the property.
How much will you need? Here are some example:
$300,000 home, using FHA Loan Type: $10,500 0r 3.5%
$300,000 home, using a Conventional Loan type: $60,000 or 20% down.
Want to calculate your own numbers? Use our Mortgage Calculator
How can we help?
As your local Realtors, we believe everyone should be able to become a home owner. Some times, life gets in the way; we want to help where we are needed! With the feedback from Renters and First Time Home Buyers, we have learned that many people, no matter what age, are having trouble with two main problems; Their credit health and saving enough money for the down payment and closing costs.
Life can present its challenges, and we’re here to lend a helping hand wherever it’s needed!
We understand that navigating these aspects can be daunting, and we’re here to provide support and guidance every step of the way.
Budget Help:
Now a days, stretching your paycheck seems like a real workout. We understand it could feel impossible to save money for your future goals. Schedule a budgeting consultation for hands on help on how to maximize your paycheck.
- Create a personalized budget that fits your spending habits
- Receive expert spending advice
- Learn Tips and Tricks for money management
- Looking to invest? Ask us about our investing consultations!
Meet our Budget Expert 👇🏼
Have you thought about Lease Purchase? This could be your fast track to home ownership!
Don’t know what you need to save for closing costs/down payment? Calculate it HERE!!