00:02so you're finally ready to start down the path of home ownership but how much cash do you actually
00:09need to scrounge up for a down payment according to nerd wallet 20 is widely considered the norm
00:15but only because that's what many lenders use for requiring mortgage insurance on a conventional
00:20loan for the national association of realtors the typical down payment for first-time homebuyers in
00:252021 was only seven percent while a larger down payment can give you a better interest rate on
00:31your mortgage and a lower principal if it leaves you high and dry when it comes to future repairs
00:37and maintenance it may not be worth it if you meet certain income requirements some conventional
00:42mortgages like home ready and home possible require as little as three percent down nerd wallet reports
00:48is your credit score over 580 you may qualify for an fha loan which requires as little as 3.5
00:55percent down or if your credit score is at least above 500 10 coming up with the right down payment
01:01is purely up to you and your financial situation just make sure you leave enough behind to cover
01:07closing costs the ongoing cost of home ownership in general and of course furnishing your new home once
01:14you've moved in
01:15you
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