House Down Payment
Are you ready to buy your first Las Vegas NV home but have no idea about what a good down payment would be? The highly experienced realtors of Galindo Group can help! We are more than happy to work with you to determine the best down payment option for your financial situation.
What is a Down Payment?
A down payment is the portion of the total sale price of your home you pay upfront. This amount also represents the beginning of your home equity. For example, if you’re purchasing a $150,000 home and pay $30,000 as a 20% down payment, you’ll only be borrowing $120,000.
What is the Average Down Payment?
The average down payment can fall anywhere between 5% and 20% of the sale price. Lenders appreciate 20% down payments because it helps protect themselves. The lower the amount you put down, the more of a risk they see you as. And most homebuyers prefer putting 20% down because it helps them avoid the cost of private mortgage insurance (PMI), helps them build equity from the start, and provides them with a lower monthly payment.
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Types of House Down Payments
If 20% seems out of reach for you, don’t let that scare you into not buying a home. You can actually purchase a home with as little as a 3% down payment. In fact, the minimum down payment amount you’re required will depend on which loan type you select.
- Conventional loans: most of these are fixed-rate mortgages and typically don’t have fast-and-firm down payment requirements. If you have great credit, you may qualify for a 3% minimum down payment. Some professions including teachers may even qualify for zero down.
- FHA loans: this is a government program that helps people who cannot get approved with conventional lenders. They allow for a down payment as little as 3.5%
- VA loans: this is another government program. It helps past or present Armed Forces members purchase a home with zero down payment.
Down Payment Assistance Plans
In addition to the loan types mentioned above, there are down payment assistance plans you can take advantage of. Below are more common down payment assistance plans available for potential homebuyers.
- The Department of Housing and Urban Development’s first-time home buyer grants
- State home buyer assistance program
- Local home buyer assistance program
- Fannie Mae
- Freddie Mac
- USDA loans
Some of these programs may even pay for your closing costs.
The Realtors of Galindo Group Can Help
Whether you are a first-time home buyer, or just need help determining what a good down payment would be, our real estate agents can help! We will listen to what your needs are, explain the market to you, and help you find the perfect home that fits your budget.
Our real estate agents will also help negotiate terms and help you with the offer, explaining the entire home buying process every step of the way until you’ve closed on your new home. Contact Galindo Group today!