How much of a down payment is needed to buy a home?
As you begin planning the purchase of your home, you’ll want to make sure that you understand the options available in financing your purchase. Whether you’re a first-time home buyer or a repeat buyer, how you choose to finance your home can make a difference in the home you are able to purchase and in the cash you have available for other expenses. For instance, some first-time home buyers may think a 20% down payment is required and as a result buy a smaller home with the intention of moving up to a larger home sometime in the future. However, in many cases they skip the starter home, go directly into a larger home, and use a lower down payment to do so. A variety of financing options are available with little to zero down. Some buyers postpone purchasing home furnishings or landscaping because they think that making a 20% down payment is standard practice. Others choose a down payment less than 20% in exchange for using cash towards extra touches that make a house a home.
