One of the most common questions first-time buyers ask is: how much do I actually need for a down payment? The short answer is: it depends on your loan type, but it's likely less than you think.
Conventional loans typically require a minimum down payment of 3% to 5% for qualified buyers. This means on a $350,000 home, your down payment could be as low as $10,500 to $17,500, not the 20% many people assume is required.
FHA loans, backed by the Federal Housing Administration, require just 3.5% down and are popular among first-time buyers with lower credit scores. For a $350,000 home, that's approximately $12,250 down.
VA loans, available to eligible veterans and active-duty service members, require zero down payment. USDA loans, available in designated rural areas, also offer zero-down options. Georgia has many USDA-eligible areas, particularly in the outer suburbs.
Georgia also offers the Georgia Dream Homeownership Program, which provides down payment assistance to eligible first-time buyers. This program can cover up to $7,500 in down payment and closing costs, making homeownership accessible to more families.
Remember that your down payment is just one part of your upfront costs. Closing costs, which include lender fees, title insurance, and prepaid expenses, typically add 2% to 5% to your total. Budgeting for both ensures you're fully prepared.
Getting pre-approved before you start house hunting gives you a clear picture of what you can afford and shows sellers you're a serious buyer. Porsha connects her clients with trusted lenders who can walk through every available option.
