Down-Payments 101

Let’s Talk About Down Payments 🏡Buying a home? You’ll probably hear the words “down payment.” Here’s what that means—and answers to common questions!

WHAT IS A DOWN PAYMENT? 💰
A down payment is the money you pay at the start when you buy a home. It comes from your own savings. The rest of the home price is usually paid with a loan called a mortgage. How much you need depends on the loan, the house, and your money situation.

COMMON MYTH: “YOU NEED 20%” ❌
Many people think you must put down 20%. That’s not true! There are home loans that only need 3%, 3.5%, or even 0%!

DIFFERENT LOAN OPTIONS 📋

Conventional Loan – Minimum: 3%. Good for many buyers.
FHA Loan – Minimum: 3.5%. Made for first-time or lower-income buyers.
VA Loan – Minimum: 0%. For military members and veterans.
USDA Loan – Minimum: 0%. For homes in some country/rural areas.

WHY A BIGGER DOWN PAYMENT CAN HELP 👍
Lower monthly payments. Better loan terms (like lower interest). No PMI (Private Mortgage Insurance). Stronger offers—sellers may like your offer more!
But: A bigger down payment means using more of your savings. Make sure you still have money set aside for emergencies.

HELP WITH DOWN PAYMENTS 🛠
Don’t have much saved? You may still have options!
✨ Grants and programs (some don’t even ask about income—I can connect you!)
🎁 Gift money from family (needs to be documented)
📉 Retirement savings (like a 401k – check for rules and fees)

DO YOU NEED 20%? 🤔
Nope! It’s helpful, but not required. In fact, I work with lenders offering just 1% down with no PMI for some buyers.

WHEN IS THE DOWN PAYMENT DUE? 📅
At closing—that’s the final step when you sign the papers and get your keys!

HOW MUCH SHOULD YOU PUT DOWN? 💡
Pick an amount that works for your budget. It’s great to put more down if you can, but don’t use up all your savings. You want to keep some money for emergencies, repairs, or moving costs.

TOOLS THAT HELP 🔧
There are online calculators to help, but the best way is to talk to a good lender. We work with some awesome ones and would love to connect you!

KEY TAKEAWAYS ⭐
You don’t need 20% to buy a home. Many loans let you put down less—even 0%! A bigger down payment can help but isn’t always better. There are programs that help first-time buyers. We’re here to guide you every step of the way.

Have questions? Want to talk to a lender?
David and I love helping first-time home buyers. Reach out anytime—we’re here to help! 😊