How Much Money is Needed for Buying a Home?

Real Estate

So you’re ready to get out of the rent race and finally purchase a new home. I’m sure you are wondering how much you will need to get into your first home. And believe it or not, it’s actually a lot less than most people think!

You can get in a home with as little as 3% of the sales price of the home for your closing costs if you are using a loan that does not require you to have a down payment. This means you can get into a 200,000 home with only $6,000!

That being said, there are specific requirements that the 0 down home loans require, and not everyone or every property meets them. The good news is that there are 1% and 3.5% down loans as well. Most of the population can qualify for the 3.5% down loan, but one of my lenders will be able to tell you the best loan program for you and your situation.

In conclusion, you can always put down more to lower your payments, but a safe estimate to be sure you can buy a home and have some funds left over is to have 6.5% of the sales price of the home that you are looking to purchase.