Save Up for a DOWN PAYMENT...

Thinking of buying, or know someone who is? The first step is to save up for a down payment. Here are some answers to some common questions about down payments.

How much down payment do I need?
To qualify for a Federal Housing Administration (FHA)-insured mortgage, the smallest down payment acceptable is 3.5%. However, down payment requirements for some first-time homebuyer programs backed by Fannie Mae and Freddie Mac can be as low as 3%. Both of these low down payment options require mortgage insurance, which take the form of monthly payments tacked on to your mortgage payment.

The minimum down payment needed to avoid extra fees or payments is equal to 20% of your home purchase price. In other words, if you want to buy a $400,000 home, you’ll need an $80,000 down payment. That leaves you with a $320,000 mortgage.

Are there any tricks for saving up for a down payment?
Yes! The best thing you can do to ensure down payment saving success is to make a goal and a strategy to meet it.

  1. Set up a savings account: Create an account separate from your emergency fund and set up a direct deposit. The account can be a special saving instrument like a CD or a bond fund, which pay higher interest rates and require waiting a set amount of time before withdrawing the funds. This ensures you won’t be tempted to draw on your down payment savings for other expenses.

  2. Convert new revenue streams: Take a part-time job and commit the extra income solely to your house fund. Or, the next time you receive a raise at work continue to live off your old salary and send that extra money straight into your savings account.

  3. Reduce extra expenses: Calculate how much money you spend on a certain luxury item (i.e. trips to Starbucks or nights out) and cut back, redirecting that money into savings. Or, consider downsizing your car to free up more cash each month. Even better, do both!

Need help navigating down payments and mortgages?   Call, text or email me for assistance on getting the best terms.

Nashville, Brentwood, Franklin Properties for sale Dianne Clayton

 Exit Realty of the South   1227 Lakeview Drive   Suite 1   Franklin, TN  37067

615-550-5555     Office                 615-207-0037     Cell

Each Office Independently Owned and Operated

Dianne Clayton Headshot
Phone: 615-207-0037
Dated: October 10th 2017
Views: 646
About Dianne: ...

Property Search

RSS Feed

View our latest blog posts in your RSS reader. Click here to access. RSS

Search Blog

Recent Blogs

Huge Price Reduction On Lake Home For Sale In Middle TN - DONT LET THIS ONE GET AWAY!HUGE
Staging Your Home To Sell - Staging Your Home to Sell... ;
Property To Sell In Probate I Can Help - Property to Sell in Probate  
Lake Front Living Home For Sale - Who Wants a Lake Front Home?Here

Saved Properties

This is a list of your favorite properties. We will email you if a property is reduced or leaves the market.

Click 'Save' to add a property to this list.

Register / Login

New & returning visitors please enter your information to login.

By clicking 'register' you are agreeing to our terms of use & giving us expressed written consent to contact you.

Questions? Comments? Complaints?

This message will go directly to the head of our team.

Location & Address

Royce Dugan
701 President Place, Suite 150
Smyrna, TN

Other Locations