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If you’re a first-time homebuyer feeling worried by the 20% down payment guidance commonly quoted, know that a down payment can actually be much lower—for example, 3% to 5% depending on loan ...
Average down payment on a house for first-time homebuyers Many first-time homebuyers mistakenly believe they must put 20 percent down to qualify for a mortgage. Fortunately, that’s not the case.
The median price for an existing home in the U.S. was $379,100 as of January 2024. A 20 percent down payment on a home at this price would come to $75,820. Regardless of price or loan type, though ...
For example, first-time homebuyers and buyers with low to moderate incomes could qualify for a fixed-rate conventional loan with a 3 percent down payment. Some lenders require a 5 percent minimum.
Down payment required: 3% (5% with adjustable-rate mortgage) Minimum credit score: 680 with less than 25% down Income restrictions: No more than 80% of area median income for property’s location
Many mortgage lenders require a down payment, which can make it much harder to buy a home. But how big does this down payment really need to be? Find out here.
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