Monday, May 22, 2023 / by Blair Hayes
If you have long thought that 20% down was the only way to go when buying a home, you are not alone. Before I began my career in real estate, I too thought that the only way to get into a home was to put 20% down. This can be quite a chunk of change, especially when you factor in other additional closing costs and fees that go along with closing on a home.
20% down is far from the minimum down payment that is required to purchase a home. It all comes down to your loan type, what you qualify for and how much you have as assets in the bank to make the down payment and cover closing costs. This is why getting prequalified or at least speaking with a lender can be so helpful to let you know approximately what you should be looking to spend.
The minimum down payment with an FHA loan is 3.5%, and on a conventional loan, the lowest percent down is 3%, though there’s also commonly 5%, 10%, 15% and 20%. You can also put more money down to lower your loan amount if you wanted to as long as it is approved by your lender.
Written by Blair Hayes, REALTOR®
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