What kind of down payment is needed? How much money is needed for other costs, such as closing costs?
With 100% financing, which is often available, you typically need about 3% out of your own pocket for various closing costs. For example, you have to pre-pay some taxes and insurance. So, for a $100,000 loan that is 100% financed, you would need about $3,000 total cash. However, many home builders help their buyers with these out-of-pocket costs, and it is possible to get into a new home for as little as $500 cash out of pocket. There are also homebuyer assistance programs that can provide down payment grants to qualified applicants.
