Wondering what prospective homeowners need for a down payment in Denver? You’ve come to the right place! The amount a prospective homeowner needs for a down payment in Denver ranges from 5% to 20%.
The Smallest Amount a Prospective Homeowner Needs for a Down Payment in Denver is Usually 5% of the Purchase Price, Unless the Prospective Homeowner Qualifies for a VA Loan or Other Program
Generally, a lender will require at least a 5% as a down payment on a home. For more expensive homes, that number increases. There are some programs, such as the VA Loan, that can require 0% down.
Regardless of How Much You Need for a Down Payment in Denver, Prospective Homeowners Should Consider Whether They Can Afford to Put Down a 20% Down Payment Upfront
While prospective homeowners can often get away with putting down only 5% of the purchase price, it isn’t always the wisest decision to do so. A good rule of thumb is for prospective homeowners to find a home at a purchase price which allows them to make a down payment of at least 20% up front.
While it’s More than Prospective Homeowners Need for a Down Payment in Denver, Putting 20% Down Up Front Comes with Several Benefits
When prospective homeowners are able to put down a down payment of 20% or more, they receive several key benefits.
First, making a down payment of 20% or more reduces the homeowner’s monthly mortgage payment.
Second, homeowners who make a down payment of 20% or more gain some equity right away.
Third, homeowners who make a down payment of 20% or more are able to pay off their loan faster than those who make a smaller down payment.
Finally, homeowners who make a down payment of 20% or more often are not required to pay Private Mortgage Insurance (PMI).
If You are Ready to Make a Down Payment on a Denver Home, Experienced Realtor Phyllis Ursetta will Walk You Through the Process
If you are ready to start seriously considering buying a home in Denver, Realtor Phyllis Ursetta is here to help you make it happen. Phyllis is the owner of Integrity Realty and has nearly 30 years of experience working in the Denver real estate market. She has the necessary expertise to help you make your real estate dreams come true. Call Phyllis today to get started!
