Do I have to put 20% down in order to purchase a home? Twenty percent down is typically the amount needed in order to avoid mortgage insurance. However, it’s possible to put down as little as 3%, or even 0% when using down payment assistance programs.
How much do I have to put down to get the best loan? The loan program that is right for you will not only depend on down payment requirements, but also property type, credit rating, debt-to-income, etc. The loan program that works best for you, may not be the same as the person buying the house across the street.
But if I want to avoid mortgage insurance, it’s better to wait and save 20% down right? This depends on how long it would take you to save up 20%. One of the many other variables you have to consider are interest rates. If it would only take you 12 months to save 20% it may be worth it to wait. But if it would take you 5 years, it might be better to buy now and take advantage of all time historically low interest rates.
Choosing your down payment amount is an important decision, and involves many variables. If you’re considering buying your first home or condo in the Greater Seattle area, go to our Calendar/Reservations page and sign up for one of our FREE First Time Home Buyer workshops. Don’t proceed without getting educated FIRST!
