Whats a good down payment on a house?
Whats a good down payment on maybe a 125K house? Taking poor credit into account, its not real bad credit but it is by far not the best.
- Anonymous1 decade agoBest Answer
The more important question is, what can you afford each month. Even if you put 50% down, if the payment is too much, you can't afford it.
I would start by talking with a lender. Tell them you don't want to spend more then 20-25% of your gross monthly income for your TOTAL mortgage payment.
20% down is best because there is no PMI. However, 3.5% FHA is also good.
On a 125,000 house, your income should be AT LEAST. 48,000 a year.
- 1 decade ago
Good answers here already. Lenders today are expecting 10%-20%. With poor credit, they'd probably require 20%.
As the other answers also note, it also depends on the size of the mortgage you'd qualify for. You could put 20% down, but if you'd only qualify for a $80,000 mortgage, you still wouldn't be able to buy.
On the other hand, if you're buying creatively, "a good downpayment" is as small as possible...assuming you can cover the monthly payments. With a lease-option, a subject to, or a number of other strategies, a few hundred dollars or less. Not everyone will take such a small downpayment, but some sellers out there will. (With a lease option, it's not even a downpayment; it's an option fee. And with a subject to, you're actually buying the house for your $10 or $100, subject to the existing financing.) I've done lease-options on property with virtually no option fee.
Hope that helps.
- Anonymous1 decade ago
Your credit has nothing to do with a down payment amount. Most lenders even FHA require at least 2.5% down payment. Your earnest money can be counted toward that amount. Earnest money typically between $1000 and more show good faith to seller. You could ask seller to pay the 2.5% plus closing costs.Source(s): Realtor
- bachrach44Lv 41 decade ago
If you want to avoid paying PMI, you have to put 20% down as a down payment - that's generally considered a good down payment.
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- rml313Lv 61 decade ago
10 to 20%
- 1 decade ago
Sorry i dont have an answer for you. It would be a good idea though to post what country you live in as financial situations and laws differ from country to country.