Minimum Amount Needed to Put Down on Home Purchase | TigerDroppings.com
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Cajun Revolution
George Washington Fan
Member since Apr 2009
44671 posts

Minimum Amount Needed to Put Down on Home Purchase

What is the minimum amount I will need to put down on a home purchase these days? I wasn't planning on putting down for at least another year to build up but I've been encouraged during to try and jump on these interest rates before they recover.

I was planning on 10-15% next year but I heard rumors of much less. Like nothing for some.
This post was edited on 12/26 at 1:36 pm



LSUtoOmaha
LSU Fan
Nashville
Member since Apr 2004
21653 posts

re: Minimum Amount Needed to Put Down on Home Purchase
I think it's 20% to avoid PMI, and 10% as a minimum unless you are a veteran or qualify for a rural house loan.


LSUAfro
LSU Fan
Baton Rouge
Member since Aug 2005
11026 posts

re: Minimum Amount Needed to Put Down on Home Purchase
Also,
FHA is 3.5% and I wouldn't put down a penny more if you don't have to.


LSUtoOmaha
LSU Fan
Nashville
Member since Apr 2004
21653 posts

re: Minimum Amount Needed to Put Down on Home Purchase
nevermind
This post was edited on 12/26 at 2:32 pm


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HurricaneDunc
Bowling Green Fan
Houston
Member since Nov 2008
9757 posts

re: Minimum Amount Needed to Put Down on Home Purchase
3.5% FHA
5% Conventional
Still some 0% rural/VA type loans out there I think, but I don't know much about them or who qualifies


nikki6
New Orleans Saints Fan
Dallas
Member since Jul 2011
1790 posts

re: Minimum Amount Needed to Put Down on Home Purchase
I did a conventional loan on 12/6 of this year and our rate was 3.37%. We put 20% down.


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GFunk
LSU Fan
Denham Springs
Member since Feb 2011
9565 posts

re: Minimum Amount Needed to Put Down on Home Purchase
$0


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VABuckeye
Ohio State Fan
Oak Hill, VA
Member since Dec 2007
12946 posts

re: Minimum Amount Needed to Put Down on Home Purchase
quote:

5% Conventional


You'd better be one pristine borrower to qualify at 5% down conventional. I know the program is there but lenders are very wary of 5% down loans these days.


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Cajun Revolution
George Washington Fan
Member since Apr 2009
44671 posts

re: Minimum Amount Needed to Put Down on Home Purchase
quote:

Also, FHA is 3.5% and I wouldn't put down a penny more if you don't have to.


Is this a good strategy? I have no intention of seeing this entire mortgage through to the end unless I keep it as a rental property. I just want a mid-level starter home package.

Is it best to pay the least amount up front? I'm just trying to get a saving/budgeting strategy for the next year.


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LSUAlum2001
LSU Fan
Tier BP
Member since Aug 2003
30463 posts

re: Minimum Amount Needed to Put Down on Home Purchase
You can put down 0.

PMI is a bitch, but there are ways around having to pay it.


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Bear Is Dead
LSU Fan
Monroe
Member since Nov 2007
3889 posts

re: Minimum Amount Needed to Put Down on Home Purchase
I would go for 20% to avoid PMI. It will add up to be alot of $.


LSU1018
LSU Fan
Baton Rouge
Member since Feb 2007
5475 posts

re: Minimum Amount Needed to Put Down on Home Purchase
I would only buy if you can put 20% down. PMI is so high right now. People on here will tell you to do an RD loan bc it's 0 down but just run the numbers for an RD loan compared to a conventional and compare closing costs for the 2.


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mytigger
USA Fan
Member since Jan 2008
12738 posts

re: Minimum Amount Needed to Put Down on Home Purchase
whatever you do try to pay it off quickly... minimum amounts and extended load periods make you end up paying double actual price of the home.


notiger1997
Member since May 2009
24995 posts

re: Minimum Amount Needed to Put Down on Home Purchase
quote:

try to pay it off quickly


No. The interest rates are so damn low right now. Don't want to pay off early. Just use the extra money to pay off other debt or to invest.


Cajun Revolution
George Washington Fan
Member since Apr 2009
44671 posts

re: Minimum Amount Needed to Put Down on Home Purchase
Ideally, I stay in the house 3-5 years until I marry and upgrade. Then I flip the property or rent it out. Least amount of up front cost the better the way I'm thinking.
This post was edited on 12/27 at 10:28 am


dustinm27
LSU Fan
Member since Oct 2008
2878 posts

re: Minimum Amount Needed to Put Down on Home Purchase
quote:

whatever you do try to pay it off quickly... minimum amounts and extended load periods make you end up paying double actual price of the home.


If the OP is not planning on staying there long, why should you pay anything but the minimal possible? Put down as little as you can and spend as little of your own money as you can. Your house will likely appreciate and you can make money when you sell it.

ETA: The only time you should every pay off anything quickly is if you plan on keeping it your whole life or it is an item that depreciates (like a car)
This post was edited on 12/27 at 10:46 am


seawolf06
LSU Fan
Raleigh, NC
Member since Oct 2007
4584 posts

re: Minimum Amount Needed to Put Down on Home Purchase
quote:

ETA: The only time you should every pay off anything quickly is if you plan on keeping it your whole life or it is an item that depreciates (like a car)


Agreed, plus he didn't convert those payments back to present value.

The RD loans do have a fee that gets added to the loan value. The income ceiling is also a factor.

I've heard of 80/15/5 loans where you take loans out to pay the 20% down and avoid PMI.


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Tiger at Law
LSU Fan
Baton Rouge
Member since May 2007
1541 posts

re: Minimum Amount Needed to Put Down on Home Purchase
I recently bought a house with a 5% down payment on a conventional loan. Did an upfront PMI payment that came out to just under 3 total years of monthly PMI payments instead of paying it until a 78% LTV...Figured I would pay some now and have lower monthly payments for the life of the loan. I plan to be int he house for a long while


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TigerTatorTots
LSU Fan
Mandeville, LA
Member since Jul 2009
68846 posts

re: Minimum Amount Needed to Put Down on Home Purchase
I put down 20% to avoid the PMI. I would set a goal to do the same. However, I believe you can put down as low as 5%


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mytigger
USA Fan
Member since Jan 2008
12738 posts

re: Minimum Amount Needed to Put Down on Home Purchase
quote:

ETA: The only time you should every pay off anything quickly is if you plan on keeping it your whole life or it is an item that depreciates (like a car)



I disagree. Anytime you can pay a lesser price for something that's always a smart move.

$200,000 loan at 4% over 30 years will cost $343,000.

quote:

Put down as little as you can and spend as little of your own money as you can.


No, you're paying an extra $143,000 to borrow $200,000. Spending 171% of the purchase price to pay less today so you can to spend more tomorrow.

Now, take that same $200k over 15 years and you end up spending $266k, saving yourself $77k in the process, in addition to the equity that you've paid into the house.



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