Saving for a down payment is an important part of the home buying process.  It takes discipline to save several thousand dollars for this purpose, but the more you save, the bigger percentage of your home you will own and the lower your mortgage payment will be.  Most times a first-time home buyer down payment isn't any differnet from an experienced home buyer down payment.

Here are a few things you need to know about down payments:

  • If you want to qualify for a conventional mortgage, most lenders recommend a 20% down payment on a home. If the home you want to buy is $200,000 a 20% down payment would be $40,000. There are other conventional home loans that offer just 5% down, which many buyers find much easier when purchasing a first home.
  • FHA Loans allow buyers to put down just 3.5% which is why most first time home buyers decide on this type of laon. FHA loans also involve mortgage insurance since the down payment is so low and this will make the monthly payments a bit more.
  • Keep in mind that the down payment does not cover other costs associated with closing on your home. Additional money will be needed for home inspections and closing cost fees.
  • Of course there are many different loan programs available, including VA loans for buyers that have served in the military and first time home buyer down payment assistance loans.  That's why it is very important to speak with a lender before making a decision on how to proceed with your home purchase.

The Cerreta Team is here to help you find a great lender and explain the buying process.  Just give us a call at

623-266-6888 or email us at  We would love to help.