Buying a Home March 16, 2022

How Much Down Payment Do I Need?

Calculating Your Down Payment

Getting your finances in order is vital when preparing to purchase a home.  If you’re looking to purchase a home, one of the first things you’ll need to consider is how much of a down payment you’ll need to make.  Depending on the type of loan you’re applying for, the size of your down payment could vary.

Generally speaking, most conventional loans will require at least 5% down payment.  Some government-backed loans, like FHA or VA loans, may allow for a down payment as low as 3.5%.  And if you’re eligible for a USDA loan, your down payment could be as low as 0%.

Of course, the size of your down payment isn’t the only factor that will affect your home buying experience.  You’ll also need to consider your credit score and the current market conditions.

So, how much down payment do you need to buy a home?  As we indicated above, the answer depends on a variety of factors, but in most cases, you’ll need at least 5%.  Keep in mind, though, that the size of your down payment also affects the competitiveness of your offer.

A high down payment shows the seller that you’re serious about buying the home.  It also demonstrates that you have the financial resources to follow through on the purchase.  This advantage can be significant in a competitive market, where the seller may have to choose from several offers.

A high down payment also gives you more leverage in negotiations.  If the seller knows that you’re willing and able to put more money down, they may be more likely to accept your offer – even if it’s not the highest one.

So, if you have the means, a high down payment is always the best way to go when buying a home.  It will make your offer more attractive to the seller, lower the amount you will need to borrow, and give you more negotiating power.  Just be sure that you have a solid plan in place for how you’ll finance the rest of the purchase.

If you’re interested in learning more about low-down payment options, there are several places to go.  There are programs for qualified buyers with down payments as low as 3.5%.  There are also options like VA loans and USDA loans with no down payment requirements for qualified applicants.

To understand your options, you need to do your homework.  If you’re interested in learning more about down payment assistance programs, information is available through sites like  Be sure to also work with a real estate advisor from the start to learn what you may qualify for in the homebuying process.

Give me a call, I can point you in the right direction!  Trent Beaver (928) 916-1921