How Much Do We Need as a Down Payment to Buy a Home?
How Much Do We Need as a Down Payment to Buy a Home?A reader asks: “My boyfriend and I have been saving to buy a home. So far, we have about $2,000 in the bank. Some of our friends say we should put up a down payment that is at least 3% of the sales price. For a $100,000 home, that’s $3,000 for a down payment, and that seems like not enough money. How much are we required to put down to buy a home? What is the minimum down payment we need for home buying?”Answer: It’s admirable that the two of you are saving up for a down payment to buy a home. Some couples, especially in California, simply go driving around on a Sunday, spot an open house, stumble inside and end up making an offer without giving home buying a second thought. Putting your finances in order and making sure you have enough of a down payment saved, plus closing costs, is smart. What is a Down Payment? For starters, I’d say that you are confusing a
