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Is $10000 enough for a downpayment?
I need a house. I have been saving for years and have about $10000. Is that enough for a downpayment or should i need trying to save. I don't want to wait too much longer. Does it really matter?
Asked By Adele G | Raleigh, NC | 40 views | Finance Legal Info | Updated 2 days ago
Answers (6)
Bonnie Irby
Bonnie Irby Berkshire Hathaway Homeservices NW Real Estate
The first step will be a prequalification. Determining what loan type you qualify for, an FHA loan is 3.5% down but you will also need to have closing costs unless it is typical to have the seller cover those in your market .
What are typical entry level homes priced at in your area?
Depending on condition of the home, how competitive the market is, you may want to save a bit more. So that you have a buffer for repairs or improvements.
At 300K purchase, your down payment with an FHA loan would be 10,500.
What are typical entry level homes priced at in your area?
Depending on condition of the home, how competitive the market is, you may want to save a bit more. So that you have a buffer for repairs or improvements.
At 300K purchase, your down payment with an FHA loan would be 10,500.
- 1 day ago
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James Simmons
Headwaters Realty
It can be enough, depending on the loan program and the price of the home. Many buyers think they need 20% down, but that’s actually not required for most loans. There are programs that allow as little as 3–3.5% down, and in some cases even 0% down if you qualify. That said, the down payment is only one part of the upfront costs—you’ll also want to plan for closing costs, inspections, and moving expenses. The best first step is usually talking with a lender to see what loan programs you qualify for and what your total cash-to-close might look like. You might be closer than you think!
- 1 day ago
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Eric Cavanagh
Keller Williams St Johns
Hi, Adele;
As Rhonda has mentioned, it depends on the price point you're looking at. Thinking that you need 20% down just isn't true - here's a quick way to think about it: there are 3 basic types of loans - Conventional, FHA and VA. VA loans are for Veterans only and you need to have eligibility. You can get into a house using a VA loan with $0 down and a good interest rate because you've served your country and you deserve it. A conventional loan is a typical loan and you can get into one of these for as little as a 5% down payment and finance at 95% of the purchase price. The last type is an FHA loan that is guaranteed by the FHA (Federal Housing Authority) and the standard minimum amount down is 3.5%. The credit requirements to qualify for an FHA loan aren't as tight as they are for a Conventional loan and these loans are designed to assist people into Home Ownership.
There are also DPA (Down Payment Assistance) programs in almost every State and County that can help you with the down payment and/or closing costs.
What many don't factor into the equation is the closing costs of the loan/transaction. Things like deed stamps, court costs for filing paperwork, title search and title insurance, Real Estate taxes, buyer agent professional fees and so on can add as much as an additional 5% to the money you might need upfront.
In addition, you'll need to consider the cost of an appraisal and home inspection in addition to the 'binder deposit', which is an amount you attached to the offer that is held in escrow and applied at closing.
A good Realtor can negotiate some of these fees into the offer so that the seller will pay for all or most of it, depending on the market conditions at the time of the offer.
So, to sum it all up: $10k in savings is a great place to start and gives you some leverage and your Realtor can negotiate some of the other costs and recommend a good lender that can see which DPA programs you might qualify for,
I'm proud of you for being diligent and saving up for getting your own place. That's the start of wealth building for you and creating generational wealth for you family for a legacy that you can pass on to your children!
As Rhonda has mentioned, it depends on the price point you're looking at. Thinking that you need 20% down just isn't true - here's a quick way to think about it: there are 3 basic types of loans - Conventional, FHA and VA. VA loans are for Veterans only and you need to have eligibility. You can get into a house using a VA loan with $0 down and a good interest rate because you've served your country and you deserve it. A conventional loan is a typical loan and you can get into one of these for as little as a 5% down payment and finance at 95% of the purchase price. The last type is an FHA loan that is guaranteed by the FHA (Federal Housing Authority) and the standard minimum amount down is 3.5%. The credit requirements to qualify for an FHA loan aren't as tight as they are for a Conventional loan and these loans are designed to assist people into Home Ownership.
There are also DPA (Down Payment Assistance) programs in almost every State and County that can help you with the down payment and/or closing costs.
What many don't factor into the equation is the closing costs of the loan/transaction. Things like deed stamps, court costs for filing paperwork, title search and title insurance, Real Estate taxes, buyer agent professional fees and so on can add as much as an additional 5% to the money you might need upfront.
In addition, you'll need to consider the cost of an appraisal and home inspection in addition to the 'binder deposit', which is an amount you attached to the offer that is held in escrow and applied at closing.
A good Realtor can negotiate some of these fees into the offer so that the seller will pay for all or most of it, depending on the market conditions at the time of the offer.
So, to sum it all up: $10k in savings is a great place to start and gives you some leverage and your Realtor can negotiate some of the other costs and recommend a good lender that can see which DPA programs you might qualify for,
I'm proud of you for being diligent and saving up for getting your own place. That's the start of wealth building for you and creating generational wealth for you family for a legacy that you can pass on to your children!
- 2 days ago
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Travis Old
Horizon Real Estate Group
Hi Adele,
Great question! The fact that you've been saving intentionally already puts you ahead of most first-time buyers.
$10,000 can absolutely get you into a home, depending on where you're buying and what loan program you qualify for. FHA loans require as little as 3.5% down, and USDA and VA loans (if you qualify) require zero down. In many markets, $10K covers the down payment and gets you to the closing table. New construction builders can also be more flexible on down payment than traditional resale sellers, so that's worth exploring if you're open to it.
Here's what actually matters more than the down payment amount: your credit score, debt-to-income ratio, and stable income. Those three factors determine your loan options far more than whether you have $10K or $20K saved.
Before saving another dollar, talk to a lender. Not to get a loan, just to get a real number. They'll tell you exactly where you stand and whether you need 60 more days of saving or if you're already there.
The Raleigh market is active and inventory has been improving, so the timing is worth a conversation. A lender call costs you nothing and gives you a real answer instead of a general one.
Reach out if I can connect you with someone, or do a quick Google search for a reputable lender in the Raleigh area. You're likely closer than you think.
Great question! The fact that you've been saving intentionally already puts you ahead of most first-time buyers.
$10,000 can absolutely get you into a home, depending on where you're buying and what loan program you qualify for. FHA loans require as little as 3.5% down, and USDA and VA loans (if you qualify) require zero down. In many markets, $10K covers the down payment and gets you to the closing table. New construction builders can also be more flexible on down payment than traditional resale sellers, so that's worth exploring if you're open to it.
Here's what actually matters more than the down payment amount: your credit score, debt-to-income ratio, and stable income. Those three factors determine your loan options far more than whether you have $10K or $20K saved.
Before saving another dollar, talk to a lender. Not to get a loan, just to get a real number. They'll tell you exactly where you stand and whether you need 60 more days of saving or if you're already there.
The Raleigh market is active and inventory has been improving, so the timing is worth a conversation. A lender call costs you nothing and gives you a real answer instead of a general one.
Reach out if I can connect you with someone, or do a quick Google search for a reputable lender in the Raleigh area. You're likely closer than you think.
- 1 day ago
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Judi SAYHAY
Keller Williams Realty
Check with a local lender and see what programs are available that you could buy a home in. There's is always a way if your credit score is good and you have some money. There are different lending programs available for buyers and some have a max you can make, like FHA, PFHA and some other programs. We Realtors don't know every program but that is why you need to connect with a Realtor and get some lender recommendations; AND please just call lenders work with your Realtor. Good Luck
- 1 day ago
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Rhonda Haynes
City Limits Realty
Adele, depending on the area you live in or where you're buying and the price point you are looking for, $10,000 should be enough. If you are a first time homebuyer, there may be downpayment assistance available or a 0% down loan program depending on your credit score. Check with a Loan Officer at your bank to find out what programs they have available.
- 2 days ago
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