How Much Down Payment For First Home

The FHA loan. fha loans require a down payment of 3.5% of a home’s purchase price, at minimum. These products are popular with first-time home buyers because the program allows below-average credit scores. fha mortgage approval standards are considered to be the most friendly toward first-time buyers.

Down payments for a house vary from buyer to buyer, house to house and between mortgage loan options. A lot of factors go into the down payment amount. Add to that your closing costs, and the answer to "How much down payment for first time home buyer?" is way too broad for a single amount.

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The federal housing administration offers a loan program attractive to first-time homebuyers because of its low down payment requirements. Depending on credit, you need only from 3.5 to 10 percent.

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In order to be approved for a mortgage, you will need at least 5% of the purchase price as a down payment if your purchase price is within $500,000. If your purchase price is between $500,000 and $1,000,000, your minimum down payment is 5% of the first $500,000 and 10% of the price between $500,000 and $1,000,000.

Millennials buying their first home today will pay 39% more than baby boomers. Some mortgages allow for lower down payments than the typical 20% down payment, so you may not need to save as much.

Saving the down payment to buy a home can seem overwhelming. First-time home buyers and those who’ve gone through the process before can experience the same anxiety. But it doesn’t have to be that way. Sometimes saving for a down payment is as simple as making small changes to your budget or exploring other financing options.

Suppose the purchase price of your home is $600,000. Your minimum down payment will be 5% on the first $500,000, for a total of $25,000. On the remaining $100,000, your minimum down payment will be 10%, for a total of $10,000. Add both totals together and your minimum down payment would be $35,000.

How Big of a Down Payment Do You Need to Buy a Home?. When we bought our first home back in 1993, we did so with a down payment of five percent. A decade ago, you could. But how much money do you need first?