Many people don’t know how much money they’ll need to put down in order to buy a house. Today, I set the record straight.
How much money is required to buy a house? I get this question all the time. Today I’m going to explain exactly how much money down you need to buy a house.
There are three popular loans that just about everyone takes advantage of when buying a house: VA, FHA and Conventional loans.
Let’s start with a VA loan. These loans are for military personnel and require a 0% down payment. It’s a great service that our government provides for our service men and women.
Next, we have the FHA loan which requires a 3.5% down payment. It’s $17,500 on a $500,000 house.
Last is the Conventional loan. Minimum is 5% down. Using a $500,000 house as an example again, the down payment would be $25,000.
Keep in mind that with all of these loans there are closing costs to consider. Your closing costs will vary depending on the type of loan you use. Be sure to talk to your lender and Realtor about how to keep these costs as low as possible.
If you have any questions regarding this or other real estate-related topics, please give me a call, send an email, or visit www.housecallrealty.com. Have an outstanding day!
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