Everyone is asking me this…
“What much do I need to put down?”
Like most truthful answers, it depends. It depends on you goals, your ability to qualify, and ultimately how you want to carry out your purchase.
But, you do NOT need 20% down however. This is important to know because there are so many people that think you need $100,000 or $200,000 to purchase a home.
If you have that money in the bank and have dedicated that to your home purchase, fantastic! I’d say use it to avoid PMI and come into your purchase with 20% equity or more.
But there are many other options that lenders can provide. It’s all about matching you with the best program that fits your needs.
Here are some rough numbers and options (of course always confirm with your lender):
3.5% down on $700,000 purchase = $24,500
5% down on $700,000 purchase = $35,000
10% down on $700,000 = $70,000
As you can see, these numbers are much more reasonable. From here, we need to look at what your monthly payments would be.
There are some simple online calculators you can use, and of course your lender will always have the best answers.
Please feel free to reach out and I’d be happy to review any scenarios with you or connect you with one of the best lenders around.