Down Payment

How much down payment do you need to buy a home?

You'll most likely need money for a down payment on a mortgage. (With some mortgages, however, you don't need to make a down payment). You'll also need money for closing costs and other housing-related costs, such as moving and repair costs. Apply with Allie Mae for help with your specific scenario.

Down Payments

A down payment is a percentage of the value of the property and is determined by the type of mortgage you choose. Down payments typically range from 0 to 20 percent of the property value.

You also might be required to have private mortgage insurance, called PMI, or government mortgage insurance, called MIP, if your down payment is less than 20 percent.

Closing Costs

Closing costs include points, taxes, title insurance, financing costs and items that must be prepaid or escrowed and other settlement costs. These costs generally range from 2 and 7 percent of the mortgage amount.

You'll receive an estimate of these costs from your lender after you apply for a mortgage. Some mortgage programs provide assistance with closing costs. Discuss this option with your lender.

Other Costs

In addition to the down payment and closing costs, you'll also have to pay for move-in expenses, including:

Van rental or moving company fee
Changing the locks on doors, installing window bolts and smoke detectors
Deposits and start-up fees for utilities, phone, cable, trash removal and other services
Immediate repairs or work your home may need, such as cleaning and painting
New appliances, if necessary
Equipment, such as lawn mowers and hoses, if needed
Decorating and furniture, if needed

 

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