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What exactly do we mean when we say down payment?
The downpayment is a portion of the purchase price that you are able to pay at closing. For example, if you are buying a $100,000 home and you put 5% down, that means that your down payment is $5,000.
A common misconception is that you must put 20% down to buy a home, but that isn’t true, especially for most first-time buyers!
FHA loans only requires 3.5% down and there a conventional options for 3% or 5% down. If you’re a Veteran or Active-duty military, you may qualify for 0% down (See about VA Loans)
Your down payment can come from a variety of sources.
If none of these options are available to you just yet, I would encourage you to sit down and work through your monthly and annual budget. Saving money is an important step in preparing to buy a home. Buying a home is a tremendous accomplishment, it’s okay if it takes a little time!
Lastly, don't forget that the down payment is separate from the closing cost (see what are closing cost). Your total cash to close = down payment + closing cost - any seller credit.
Let's chat about your options
michael s b
laura w
brian b
kenneth t
erica w
jamie t
richard u
elizabeth u
colette d