How much should I save for a downpayment for a home?

I am living in an apartment and would like to buy a home.

The standard downpayment used to be 20 percent of the purchase cost. Times have changed dramatically. I know NUMEROUS people who have bought homes with 0-5 percent down in the last 10 years, especially since interest rates plummeted around 2001-2002.

I just purchased a home in 2004, and we were required to put a downpayment of roughly 5% of the purchase cost. We were able to get a conventional interest rate of 5.5% at the time. Our mortgage payments have been very manageable. If you are concerned about building equity faster or saving on interest, you can always pay a little extra each month (a little goes a LONG way). We've payed an extra $100/mo., and we've knocked 6 months off the life of our loan so far, which is huge.

These days, many, many lenders have 95-100% LTV (loan-to-value) loan programs for first-time buyers (THAT is key). You should call banks and mortage brokers in your area and ASK them if they have any 95-100% LTV loan programs, and ask what you need to qualify (there might be income restrictions, in my case there weren't any). It's true that if you put less than 20% down, you have to pay PMI (basically mortgage insurance), but I believe the majority of new homebuyers today pay that. It seems fairly standard. The BEST part is that PMI is NOT permanent. You can have your PMI payments stopped after you accumulate 22% equity in your home (which should only take a few years between your home appreciating in value, plus you making payments decreasing the amount you owe). If you go this route, there are MILLIONS who have gone it with you, and some of us (me, included), don't regret it one bit.

Getting an FHA loan is sometimes easier because your loan is guaranteed by the federal government, but they have limits on how much you can borrow. Before I ever applied for anything, I pulled my own credit report from MyFico.com, and made an appt. with a local bank rep to discuss my options.

There are three big things to prepare before you shop for a loan:

1. Make sure your credit is as clean as possible (that means do NOT open any new credit right before or during your lending process).

2. Make sure your debt-to-income ratio is as LOW as possible. This means that you want to try to make sure you are not spending more than 36% of your income on debts like rent, car, credit cards, etc. Some lenders might want to see that ratio a LOT lower.

3. Save for your downpayment PLUS have a little leftover for after you close on the home. Once you get in there, chances are, you'll need the cash for repairs or to furnish the place.

Best of luck to you!

at least 10% of the price plus maybe 4-5% for closing costs. But talk to a lender, you mighgt be able to get a lower down payment with special deals. Make sure you have the money in your account at least 3 months before you buy! You have to show your bank records for a few months and if money suddenly pops into your account, you have to explain why and it's a bear. Just have it in there beforehand and no problems

As much as you possibly can, even if it seems to be more than you may need. This way, after you buy you will have $$$ left to make the changes you want to. Even though you can get a home with little or no money down, do not do it - 20% down will save you money on interest&PMI.

If you can afford it, save 20% of the cost of the house. the mortgage will be less onerous at that level.

Most lenders require between 5% and 7% of the total cost. That doesn't include closing costs. If at all possible try to save at least 10% but if it's not possibly, you need to have at least 5%.

Good luck to you!

Usually 10% down if you are going to live in the home. 20% down if you are buying property as an investment.

Nothing! Yes I said it... Nothing! Ask your mortgage professional about a gift of equity grant. These grants do not have to be paid back and you can receive as much as 10% of the purchase price. All jokes aside, you should save money for your closing cost which should range between 3000 and 5000 depending on your loan amount.

You need about 5000.00 per one hundred thousand dollars.So if you want a home that cost one hundred thousand,save around 5000.00.Best of wishes on YOUR,not the rent man, investment.

20% of the price of the house is usually the down payment size

If you can afford to hold out a bit, save 25% down. I did that and it cut the cost of things like mortgage insurance etc... down a great deal. Check out the banks/mortgage companies you are thinking about using and see what benefits they give you for more of a downpayment.

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