First Time Home Buyer's Down Payment

Typical Amount

The typical amount of money a family puts down on a new house is anywhere from five to ten percent even though it’s recommended buyers put down at least twenty percent. It’s a good idea to put more money down not only to avoid paying private mortgage insurance every month but also to help buyers have equity in their home. Furthermore, a bigger down payment means buyers can secure a more affordable mortgage payment every month. The lower the mortgage payment, the more likely the buyer is to pay the payment in full and on time. Homes are becoming more expensive, and buyers are finding it more and more difficult to save money for a down payment, so the federal government is stepping up to the plate to allow buyers a chance to buy a home without a twenty percent down payment and no PMI.

Continue reading to uncover the details on FHA mortgages.