How Much Do You Really Need to Buy a Home?
Many people assume they need 20% down to buy a home. You don’t.
Depending on the loan, the minimum down payment can be much lower. Conventional loans can start at 3% down, FHA loans at 3.5%, and VA and USDA loans can require nothing down for those who qualify. On a $300,000 home, 3.5% is $10,500. At 20% it would be $60,000.
Your credit score matters too. With an FHA loan and a score of 580 or higher, the minimum down payment is 3.5%. With a score between 500 and 579, it rises to 10%. FHA rules also allow the entire down payment to come from a gift, which helps many first-time buyers.
Don’t Forget the Other Costs
Besides the down payment, you’ll need money for closing costs, and often a reserve for moving and early repairs. A smaller down payment can also mean mortgage insurance, so the full picture matters more than any single number.
The right amount depends on your income, savings, credit, and goals. I’ll look at your situation and show you a realistic range with no pressure.
Let’s Talk About Your Homebuying Plans
I’m Bob French, an independent mortgage loan officer serving Greater Atlanta. I’ll help you compare financing options and understand the numbers.
Bob French · NMLS #2333469 · David Kilpatrick Financial LLC · NMLS #1574879. This article is general information, not a loan offer or a commitment to lend. Loan programs, limits, and requirements change and are subject to underwriting and lender requirements.