Traditionally, a standard down payment has been 20% of the price of the home. That’s the number lenders often suggest, and if you put that much down, you don’t need to pay private mortgage insurance, which can cost between 0.5% and 1% of the loan amount. But with homes being so expensive, it can be difficult to come up with that much cash all at once.
Less than 20%
On a 250,000 home, for example, you would need to put down $50,000 if you had to put down 20%. Most lenders are OK with buyers putting down less than 20%. Some lenders allow you to put down 10% or even 5%. And FHA loans offer mortgages where you need to put down only 3.5%.