How Much Down Payment Do You Need to Buy a Home? [ VIDEO ]

how much down payment do you need to buy a house


Jason fox of The Madrona Group real estate team answers the question... "How Much Down Payment For a House?"

There are still plenty of 0% down loans available for conventional loans. There are good 3.5% and 5% down loans available for FHA loans.

Often times people think that you need 20% down to buy a home. However, that is actually less common than 0%, 3.5%, 5% and 10% loans.

The reason most people assume you need 20% is that is the amount you need to avoid paying private mortgage insurance (PMI).

The insurance is a percentage of the loan amount annually, paid monthly with your mortgage payment. PMI is nothing to be afraid of. PMI simply protects the lender in the case of foreclosure, and its cost is generally well worth the gains in home equity associated with purchasing sooner and making a smaller down payment.

It is best to talk to a professional mortgage broker about what would be best for you.

Contact David Bryce our team mortgage specialist.


Use our home pricing tool to get an instant estimate of the current value of your home.


How Much Do You Need For Down Payment On A House? Real Estate FAQ [VIDEO TRANSCRIPT]

This is Jason Fox with the Madrona
group and today I'm answering frequently
asked questions about real estate. One of
those is, How much down payment do I need
to buy a new home? A lot of people
kind of have a 20% down payment idea in
their head and that's generally because
that's what you need to buy down
mortgage insurance. However, there are a
lot of zero down loans, in addition
there's some 3.5 and 5% FHA loans and
even some 5% and 10% conventional loans.
PMI or private mortgage insurance is
nothing to be afraid of it's just an
insurance that the bank puts on you to
make sure that they're protected in case
of a foreclosure. Obviously, if you can
get away from having PMI that's better
but often times the cost of the PMI is
well worth the gains that you'll make in
home equity.

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About the Author

Jason Fox

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"The best way to find yourself is to lose yourself in the service of others." ~ Gandhi [ Recognized as a top 3.5% agent in the United States. ] [ Jason Fox was born in Everett, WA currently lives in the Meadowdale neighborhood in Lynnwood and has lived in different parts of the Puget Sound area in between. He has been in the real estate industry for 20 years in many different capacities. From General Manager of a real estate CRM engagement business, Founder of 2 real estate marketing agencies, nationally recognized blogger with the Jason Fox Real Estate Marketing Blog, Marketing Manager for a top title and escrow service. ] [ Jason is now an award winning residential real estate sales agent, Co-Founder of The Madrona Group, Co-Owner of John L. Scott Ballard and John L. Scott Westwood. ] [ Active in the community, Jason is a proud part of the Autism Speaks effort to raise awareness for autism. This project is very dear to him as he has an 8 year old son, Hudson, diagnosed ASD. Jason is also involved with Neighbor's in Need, the Forgotten Children's Fund, WELD Seattle and the Union Gospel Mission assisting the homeless population in the greater Seattle area. ] [ "My passion is being able to give back to the community that has given so much to me." ] [ When he is not assisting his friends and family with the services of home ownership he loves being a dad to his 4 children, Carter, Rowen, Tyler and Hudson and being a husband to his amazing wife Sarah. Hiking, working around the house, cheering for the Seahawk's, Mariners and Huskies and golfing. ]

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