What is the average down payment on a starter home?

Answer 1

Probably 10% of selling price, although some circumstances allow 5%. If you are paying less than 20% most lenders will require you to buy PMI, which is insurance you pay to insure that the lender will be paid if you default. That will be on top of your mortgage payment. (more info http://www.frbsf.org/publications/consumer/pmi.html#what )

You should talk to a real estate agent or loan broker (or your bank) for information relevant to your circumstances. Your income, area of the country, and credit rating will be some of the important variables.

Answer 2

I agree with some of the answers you have here. 5 - 10% is fair. Question, are you eligible for a Veterans Administration loan, (i.e. current/prior military service)? If so, there does NOT have to be a downpayment at all. The VA simply guarantees the loan in which you would or acquire from a lending instution. With a VA loan you can sell and have the new buyer assume the loan but you cannot get another VA guaranteed loan til' it's paid off. It's the best loan to value ratio going to get you started. Hopefully this helps.

Answer 3

Ask your loan officer. You may qualify for FHA which only requires 3-5% down. In some cases, for FHA, your loan officer can get you into a down payment assistance program which will take care of the 3-5% down. Also, there are programs like MHDC that are grants which will give you the money down if you continue to live in the residence for a period of years (2-5).

Always does the downpayment depend on your credit. Also, get a pre-approval from your mortgage loan officer before contacting a Realtor. It makes the process go so much quicker and easier. If you don't know of a lender, then you can and should ask your Realtor to refer one to you. They usually know the easiest ones to work with. I know I do!

Answer 4

I guess the average is 20% but how much you actually pay is up to you. For my first house I bought last year I paid nothing down. The finance people try their hardest to steer you away from that, but it IS AN OPTION! http://www.buy0down.com

Answer 5

Ten percent unless you live in a government regulated state/country that permits first time buyers a lower rate. (usually half--5 percent down). Good luck.

Answer 6

With fair credit. Their are alot of %100 Mortgages out ther. Find the right Bank or Mortgage company for you ask lots of questions. Good luck

Answer 7

depends on your credit score and historical docs (tax filings, w2's etc.) and the price of the home.
usually, 20% if you want to avoid PMI (private mortgage insurance)
but..if you have good income, good credit score, you can get a first for 80% and a second for 20%.
so...depends on the price of the home and your credit score etc.

Answer 8

it depends on location and size of starter home usually about 80,000