What should my downpayment be?

Your down payment should be the amount that puts you in the strongest financial position after closing, not necessarily the largest amount you can produce or the smallest the loan allows. In Tennessee and throughout Florida, the conventional wisdom about 20 percent down exists because it eliminates PMI on conventional loans, but it is not always the right answer for every buyer. Putting all available cash into a down payment and arriving at closing with minimal reserves is a fragile position if an unexpected expense arises in the first months of ownership. Most financial advisors recommend keeping 2 to 3 percent of the purchase price as a reserve fund after closing. For buyers using FHA loans (3.5 percent down), the monthly PMI cost is real but often outweighed by the benefit of preserving cash reserves. For conventional loan buyers, if you can reach 10 percent down, you qualify for lower PMI rates, and at 20 percent it disappears entirely. The right answer depends on your loan type, your interest rate, your reserve situation, and whether down payment assistance programs in Florida or Tennessee reduce the trade-off. A lender who runs the side-by-side comparison of 5 percent, 10 percent, and 20 percent scenarios with real payment numbers is the fastest way to make this decision with confidence rather than guesswork. Kevin Neely & Kaitlynd Robbins | K2 Sells, Keller Williams Elite Partners

20% DP is not always need it, talk to your lender for options to a lower DP

Good afternoon, If you are a 1st time home buyer, there are loan programs that only require 3.5% down, such as an FHA loan. With 20% you can use a Conventional Loan that would more than likely eliminate the PMI, which is Private Mortgage Insurance. I recommend checking with your bank/credit union and a local mortgage company and shop for financing. Good Luck!

It all depends on your circumstances, the myth that you need 20% down is just to avoid Private Mortgage Insurance which is required on loans with less down. There are as low as 3% down conventional, 3.5% down FHA, zero down VA mortgages available along with State & local first time buyer programs to assist with down payments and closing cost depending where you are buying at. Most of these programs are based on income, check with a local lender familiar with the area.

Ezekial, 20% down is more for conventional loans. There are other programs out there such as VA, FHA, USDA that are much lower downpayment requirements. I am in Florida, but there are also different programs that help with down payment assistance here. I would reach out to a local Realtor and speak to them about preferred local lenders to get all your options.

This is a very important conversation you will need to have with your broker/lender, only they should advise you in this area as realtors have good insight into real estate and should not be providing too much financial advise.

Mortgage programs allow a range of 0% down to as much as you want. The right amount will be determined by what your short and long term goals are. Find the right REALTOR and mortgage lender. Talk to them about what your goals are and they can help you determine what the right amount to put down is. But do know that the days of always putting 20% down are behind us. There are many programs available to purchase a home.

Ezekial, While 20% downpayment is customary on a conventional loan, there are other loans & programs available to borrowers that have substantially lower downpayment requirements. If you are a veteran, a VA loan may lend 100%, and FHA loan generally requires a 5% downpayment. There are also a lot of great programs for first-time home buyers; some states even have grants that do not need to be paid back. Make sure to discuss with your lender to see what options are available to you!

Hello, this really will depend on a few things such as the program and credit scores. There are FHA programs available with 3.5% down and many other conventional loans with as little as 3-5% down depending on qualifications. Keep in mind those lower down payments will have mortgage insurance tied to those programs in most cases. There are a few programs that offer lender paid mortgage insurance for in exchange for a higher interest rate, but you will want to ask your lender for options. Best of luck!

Hello! It really depends on the type of financing you are getting. 20% down is great but I work with lenders and am located in an area where you can get a loan for as little as $500 down. I would recommend you ask your agent for a couple of lender recommendations. If you are working with a Berkshire Hathaway HomeServices agent, you may be able to use a Berkshire-owned lender (Prosperity) who offers free appraisal, low origination fees, and guarantees the lowest interest rate. There are so many programs out there, talking to your agent would be a great place to start. Good luck on the journey to home ownership.

The more you put down, the lower your payment will be. However, there are plenty of programs that only require 3% or more down. THDA loans also offer 0 down if you have trouble coming up with a large down payment. Check with your local lender or I would be happy to provide one to see what option is best for you!