Seattle Real Estate | What Do I Need for a Down Payment on a Home?

Here’s one of the most common questions we receive in our new home buyer classes and we have a few answers for you. I’ll explore a couple scenarios with you in this article and share what might be a couple good options for most people.

Common myth: You must have at least a 20% down payment of the purchase price to buy a home. False!

Truth: There are a variety of programs available in Washington State and locally including the option for an ‘FHA’ loan which requires 3.5% down payment typically. Or maybe you qualify for ‘down payment assistance’ with a particular City or other programs. Last year I had a client qualify for $40,000 of down payment assistance on a $385,000 purchase price. Or you could go with a 5% or 10% down payment ‘Conventional’ loan that has better benefits to you typically and also does better in multiple offer situations or a competitive market.

As you see, there are a variety of options to explore. It’s simply about having the education, which many people forego trying to ‘do it their self’, they rely on knowledge of just their inner circle, or they saw an ad online or on tv and took that as the law. We highly encourage Homebuyer Education, especially for the LARGEST PURCHASE OF YOUR LIFE.

Ask yourself this

If you were going to purchase a new coat you’d probably do a bit of research first. You’d probably look both online and try on coats at multiple stores until you found something that looked right and fit your budget. AND THAT’S JUST FOR A COAT! Yet we find time and time again new home buyers are forgetting that taking the correct steps and learning are essential to not only getting into a home, but getting the best deal on the home and market as possible (within reason), while obtaining the type of home in the location they desire.

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