So how much money do you need to save to buy a home anyways? It used to be you needed to have 20% of the purchase price to put down on a home purchase. Now lenders offer many different programs for every budget. The most common are the following:
Conventional – 3%, 5%, 10%, 20% Down Payment Options – this is for the more qualified buyer. There is no 3rd party approval required and very little condition requirements. You do not have to refinance to get rid of PMI.
FHA – 3.5% Down Payment – lower qualifications than conventional. Requires FHA approval, condition restrictions.
VA – $0 down payment – only for Veterans. Fairly lenient on qualifications. Requires VA approval, some condition restrictions.
USDA – $0 down payment – restricted to certain areas outside of city limits. Have an income cap for each county. Lower qualification requirements. Certain condition restrictions.