- Debra Flannery P.A., AHWD,BrkrAssc,REALTOR ®,SFR
- Tropic Shores Realty
- Text: 727.641.0900
There are many factors that go in to the down payment of a home, but for simplicity sake, know that the cost of the down payment ultimately depends on the loan type.
While the minimum down payment you need is 3.5% (with an FHA loan for example) any real estate expert will tell you to save a minimum of 5% of the cost of the house, in cash, so that you can qualify for a conventional loan.
If you put down a percentage lower than 20% on the conventional loan you will need to also pay mortgage insurancean insurance that protects the lender if you choose to stop paying your loan. That said, if you are able to put down more than 20%, your monthly mortgage payment will cost much less.
In reality, most people dont have the budget to pay 20% or more of a down payment, upfront. Thats why it is critical to first know what size loan you qualify for, as this will impact the cost of the down payment.
To make sure you are fully informed, consult with a realtor who is trained to answer complicated questions like how much do I need for a down payment?
Contact me today and we can talk about your unique options, the next best steps towards saving for a down payment and more!