How Much Down Payment is Needed in Today’s Market?

The answer to this question seems to change every few years.

In the “old” days, lenders required 20% or more. But as home prices continued to climb, that 20% nut became too much for home buyers to accumulate. Over the past few years, it became very easy to qualify for 85%, 90%, 95%, and even 100% financing.

Unfortunately, many of these same borrowers are in trouble today as the value of their home has reduced to an amount that is less than the balance on their loans. However, even today, there are still some 100% financing programs available.

To get the best rates, a 10% down payment is desired. Lenders are still very competitive in rates when a borrower has a 10% down payment. Not all of that down payment has to come from the borrower. Some of it can come in the form of a gift.