The price of the home minus the down payment is roughly what you borrow. The money can come from savings, the sale of another home, a documented gift or an assistance program.
Why it matters
A larger down payment means a smaller loan and lower monthly payments, and on a conventional loan it can avoid mortgage insurance. Some programs allow a small down payment or none at all, which keeps cash in your pocket for closing costs and reserves.
Where you meet it
When you set your budget. Our first time home buyer roadmap puts it in order with the other steps.
Planning to buy?
A free 15 minute call with Laurie. No credit check, no obligation.