"Saving for a down payment is one of the clearest signs you're ready to buy a home. Most buyers think they need 20% down, but the minimum down payment for a house depends on your loan type and eligibility: Conventional loan: As little as 3% down with good credit. FHA loan: Minimum 3.5% down, ideal for first-time buyers. VA or USDA loans: 0% down options for qualified borrowers."
"A larger down payment can lower your monthly costs and help you qualify for better rates. If you put down less than 20% on a conventional loan, you'll likely pay private mortgage insurance (PMI) each month until your loan balance drops below 80% of your home's value. Quick tip: The more you put down, the less you'll pay monthly, and you can avoid PMI entirely once you reach 20%."
Steady income, manageable debt, and savings for a down payment plus an emergency fund indicate readiness to buy, especially with plans to stay five years. Down payment minimums vary by loan: conventional loans can require as little as 3%, FHA 3.5%, and VA/USDA offer 0% for eligible borrowers. Larger down payments reduce monthly payments and may secure better rates. Putting under 20% on a conventional loan typically triggers monthly private mortgage insurance until the loan-to-value drops below 80%. Buyers should also budget roughly 6–9% of the purchase price for upfront costs and maintain reserves for repairs or income gaps.
Read at Redfin | Real Estate Tips for Home Buying, Selling & More
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