How much for a down payment

ramcheer55 · July 2012

I know that there are some different incentives such as first time homebuyers and such...but how much is a good amount for a downpayment. I have a huge amount of student loans and my husband has a small amount. We both work full time and are virtually debt free minus the student loans (no credit card payments, store charge cards, etc.) It is so difficult for us to set aside money for saving for a down payment due to the amount that I pay on my school loans, utlities, groceries, etc. We are hoping to buy a house next August. Our lease on our 1 br apt is up in February but we are going to extend the lease for another 6 months which would put us there until August. Our goal is to have enough saved up for a down payment and closing costs by then. We know that we really need to tighten our belts and cut out going out to eat, movies, etc. but still want to be able to enjoy ourselves. How much is a good size down payment for a home in the 130,000 - 145,000 range?

atlcatlover · July 2012

Ideally you'd put down 20%. But you can put down as little as 3.5%. In addition to the DP and closing costs don't forget to factor in all the additional costs that come with owning a home - lawn equipment, higher utilities, etc. You will also need to have an emergency fund on top of all this - 3-6 months of expenses minimum. Owning a home is much more than just the monthly payment.

GeorgiaRiah · July 2012

You can go as low as 3.5%. You will need your money for closing which can be as high as 6% because you usually pay Insurance & Taxes up front. Also, you will need money for your appraisal ($400-500) and inspection ($300-500). You will need money to turn on all the utilities and any appliance etc you may need moving in. It is a lot more costly than it looks when you start out. You may also pay for an inspection or appraisal and decide not to go with that house then you will need more money for the next house.

R.Wilsonny · July 2012

I would highly recommend saving until you get the 20% down, otherwise, you will wind up paying PMI (a waste of money imo).....

LoveKiss · July 2012

You need at least $5075 for a dp (3.5% FHA), another $5075-8700 for closing costs, another $15k for your emergency fund (maybe more, depending on how much 6 months of expenses are), and another $3-5k for immediate house stuff (lawn equipment, paint, new furniture, etc.). So $28k-34k is a good place to start.

How much for a down payment

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