Our Blog

How Much Do You Need for a Down Payment?

December 16, 2023
Published by Garrette Custom Homes

Having a good down payment is a big advantage for buyers of Puget Sound homes. The bigger your down payment, the less money you need to borrow to get into a new home. But how much is enough?

Most financial experts recommend at least a 20% down payment to avoid PMI, or Private Mortgage Insurance. PMI is a monthly fee added on to your mortgage payment. It protects the lender from losing money if you don’t pay your mortgage. The fee is rolled into your monthly payment and stays there until you build up at least 20% equity in your home. PMI ranges from .5%-1% of the home’s purchase price per year.

Once you’ve reached that milestone, consult your mortgage lender to see how much of a down payment you need to get pre-approved for the loan amount you’re seeking. Pre-approval can help you buy a home faster. Although interest rates have increased, the housing market is still competitive due to a lower supply of homes for sale.

You may want to ask your lender about government programs such as FHA and VA loans that could give you a mortgage with a smaller down payment. The lowest amount needed for an FHA loan is 3.5% of the purchase price. Veterans can get VA loans with no down payment. State programs exist for qualified applicants, such as those with disabilities or certain service careers.

Garrette Custom Homes is now offering a 5.75% 30-year fixed interest rate* on select Puget Sound Quick Move-In Homes to qualified buyers. This offer expires 12/31/23 Quick Move-Ins give you all the benefits of a brand new home without the wait that comes with starting from the ground up.

Homes are available throughout the Sound. Our current list includes one and two story homes from 1,982-4,508 square feet. They have 3-4 bedrooms and 2-3.5 baths and are listed for $749,900-$1,934,900.

The home at 22607 146th St. E, Orting WA is move-in ready and eligible for the interest rate deal. Situated on Lot 16 in Cascade Springs, the home has 4 bedrooms, 3.5 baths and a 3 car garage. Built on our Sierra Multi-Gen floor plan, this 2 story 2,892 square foot home has a first floor primary bedroom suite. The multi-gen suite is also on the first floor and contains an additional bedroom, sitting room and full bath. This home sits on a 1.09-acre lot and is offered at $999,900.

Call Garrette Custom Homes at 888-627-0013 to ask about our Quick Move-In Puget Sound homes.

*20% down & 760 FICO required. Information on this page related to U.S. Bank is an advertisement for products and services of U.S. Bank and is not intended to imply an affiliation or association with the real estate broker or residential property displayed. Loan approval is subject to credit approval and program guidelines. Not all loan programs are available in all states for all loan amounts. Interest rates and program terms are subject to change without notice. Visit usbank.com to learn more about U.S. Bank products and services. Mortgage, home equity and credit products are offered by U.S. Bank National Association. Deposit products are offered by U.S. Bank National Association. Member FDIC. ©2023 U.S. Bank. Offer ends 12-31-2023

Categorized in: Build on Your Land, Community Info, How Much Do You Need for a Down Payment?, Market Tips, New Home Tips, Puget Sound WA Tips, Selling Tips, Things To Do, Uncategorized

This post was written by Garrette Custom Homes