What is a good down payment on a house that is $100,000?

I'm not looking at getting a house right now but i'm wondering how much i should save up because i plan on getting my own place next year once im done with college, or maybe a little later. Also is it a smart move for me to jump right in and get a home or should i just get an apartment at first since I have student loans to pay as well. Please help!

8 Answers

  • Anonymous
    1 decade ago
    Best Answer

    FOCUS on getting debt free from student loans.

    get out of school , rent until u have 3-5 yrs experience in ur field.

    surprise ! u probably will change locations 2-3 times in 3-5yrs. try that with a house!

    in reality 'jumping' into a house would be financially under educated.

    as for saving up try the 100% plan.

    try 80% down plan.

    u have time to work 2 jobs and save as u get free from debt slavery.

    Source(s): biz owner , employs debtor broke grads. some who have lost their house because of finacial under education
  • 1 decade ago

    If you could afford 5-10k down and buy a 2 bedroom condo or townhouse, and then get a roommate, you'll be looking good. Your personal cost per month with the roomie will be lower than renting would be.

    You don't want to get in over your head with debt right out of school, but if you plan to stay in your city for 5 years or more, buying is a great move.

    My wife bought her townhome shortly after college when everyone else was renting. She had roommates for years. She bought her place for around $90,000 and sold it for $180,000 nine years later. Since her loan was paid down significantly by the time she sold, she walked away from that townhouse with a check for about $105,000 after closing costs and agents fees.

    That will never happen if you don't buy a home.

    So again-- don't rush it. Get an apartment for a year and save up some money if you want. But make it a goal to save up and get something as soon as practical. Buy something somewhat cheap and older that you can paint and make cute on your own.

    Good luck to you!

  • 1 decade ago

    Whatever you'd like.

    I have never put more than 3% down on any of my properties. In this market, though, you may want to put more down.

    Whatever you finance will cost you money.

    DO NOT PAY PMI. If you have less than 20% down, get a loan that will give you the rest.

    For example - an 80/20 Loan (80% financed, 20% down) will not require PMI.

    You can also get an 80/15/5 loan (80% financed, 15% second mortgage and 5% down) that will not require PMI.

    BUT a 95/5 loan (First mortgage of 95% and 5% down) WILL REQUIRE PMI.

    PMI is an insurance that companies require if they pay more than 80% of your loan through financing. HOWEVER, you get better tax deductions by going with the 80/15/5 option because no lender is giving you more than 80%.

    Bottom line - you can get houses with little to no money down. Make sure that you evaluate the market though - if the market is falling, it may be better to continue renting for a year or two.

    Good Luck.

  • 1 decade ago

    The traditional down payment was 20% to avoid PMI and get a decent rate on the mortgage. This will probably be a good target to aim for, you might get away with less down but you may suffer with a higher interest rate, etc.

    Don't forget some extras for fees and such, and it's good to keep some savings for emergencies after you buy a place too.

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  • 1 decade ago

    For a conventional loan you usually need 10% down, there are loans available with just 3% down. Buying is always smarter than renting as you are making an investment. Real estate typically doubles in value over a 10 year period. You sound like a very smart girl, good luck!

  • Ellen
    Lv 4
    4 years ago

    It usually depends your state. It can range between 10 and 30 percent of the listed price. The most commonly used down payment is 20 percent though, so 20000 dollars

  • Anonymous
    1 decade ago

    20% used to be the healthy rule:

    If you can't afford 20 percent,

    you should rent!

    (See, it rhymes)

    - Don't believe anybody telling you real estate is an investment, as Warren Buffett said - your own home is a liabililty, not an asset. -

  • 1 decade ago

    if u have an A credit at least 5%.

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