What is a good down payment for our first house?$10,000?

Answer 1

Most mortgage companies would like to see approximately 20% of what the home costs. For example 100,000 cape cod at 123 main st will require 20,000. However, at the same time if you do not have those fund you may purchase what is referred to as PMI (private mortgage insurance). the borrower can pay a yearly rate for the insurance or lump sum at the house closing.

Answer 2

If you have an IRA or a 401(k), you can withdraw up to $10,000 (assuming you have the funds to cover it) without penalty if the money is to be used for your first home purchase. You have to fill in a bunch of extra forms at closing and at tax-time, and you still have to pay taxes on the withdrawl if you did not pay tax on it before you put it in, but it's a very good place to look for your down-payment.

A few years back, 20% of purchase price was pretty much the standard but that has changed a lot. You can actually put no money down at closing, if you select the right loan. 20% may be the best way to go, no money down may be the best way to go. It depends a lot on your cirucumstances--- your income, the price of the home, how fast the market is expected to appreciate, how long you plan on staying there, etc. If your new home is a "fixer-upper" it may be better to put a lower down-payment so you can keep your cash for repairs, even if it means paying more every month in mortgage insurance. Talk to your realtor and your lender to find the best balance for you!

Answer 3

Try and make sure you pay 20% of the value of the home, that way you don't have to pay mortgage insurance which adds a lot to payments. You get a better mortgage rate cheaper.
If you get other loans lets say $10,000 the interest rate will be high If you getting 1st home means not that much income in general. Be careful your debt could mess up marriage.

Answer 4

Most people right now don't have any funds available for down payment. Some can't even cover their own closing costs. There are 100% loan programs available. There are first-time buyer programs which only require 3% of your own money. Don't think that you can't afford a home just because you don't have a down payment saved up.

Answer 5

The actual down payment dollar amount should be dictated by how much your house costs. If possible, you should at least put down 10% and get two separate loans for the other 10% and the rest of the 80%.