Down payment options for a $300K house
How big of a down payment do you need for a $300K house? That’s going to depend entirely on the type of mortgage you choose.
While some may require no down payment at all, most will need at least 3% of the purchase price ($9,000) or 3.5% ($10,500). However, if you have a down payment of 20% ($60,000), you could potentially save a substantial amount on mortgage insurance and interest charges.
The key lies in choosing the down payment amount that aligns best with your circ*mstances. Read on to learn how to determine the optimal one for you.
In this article (Skip to...)
- Down payment options
- Minimum down payments
- Should you put 20% down?
- Down payment assistance
- Monthly mortgage payments
- Home affordability FAQ
- Choose your down payment
>Related: How to buy a house with $0 down: First-time home buyer
Down payment requirements for a $300K house
The down payment amount you’ll need depends on the type of mortgage loan you choose. Let’s take a closer look at how much you would need to put down for a $300,000 home with each of the five major loan programs:
- Conventional loan: $9,000 (3% down). A loan that conforms to Fannie Mae and Freddie Mac’s guidelines, including a minimum credit score of 620
- FHA loan: $10,500 (3.5% down). Backed by the Federal Housing Administration. Your credit score may be as low as 580 if you have a 3.5% down payment
- VA loan: $0 (0% down). Only available to military service members and veterans who have reached minimum service thresholds. Surviving spouses may also apply
- USDA loan: $0 (0% down). You need to purchase in a designated rural area and have a low-to-moderate income for the area where you’re buying
- No-PMI conventional loan: $60,000 (20% down). If you want to avoid private mortgage insurance (PMI) you need 20% down. But you may find lenders that allow you to borrow a second mortgage to bridge the gap between your savings and that 20%. More on that below
Of course, all these are minimums. As a rule of thumb, the more cash you put down, the lower your interest rate is likely to be.
But even if you come up short of 3% or 3.5% down, you may have options.
Various down payment assistance programs (DPAs) are accessible across the country, offering grants or loans to assist you in meeting a portion or all your down payment needs. In some cases, these programs may even contribute to closing costs.
These valuable DPA programs can put homeownership within reach for first-time buyers who can easily afford mortgage payments but face challenges accumulating funds for the upfront costs.
What’s the minimum amount you can put down?
Each individual’s home buying journey is unique, and securing a suitable mortgage loan will largely depend on your financial situation. Lenders carefully assess factors such as credit score, gross monthly income, and overall debt obligations to determine your home loan eligibility.
We’ve already mentioned some of the restrictions on certain types of loans. But let’s take a deeper dive into the requirements for low- and zero-down mortgages.
1. VA loans ($0 down)
To get a zero-down VA loan (backed by the Department of Veterans Affairs), you need a Certificate of Eligibility (COE). The VA has strict guidelines governing its issuance.
Typically, veterans, active-duty service members, members of the National Guard, reservists, and certain surviving spouses are eligible for this type of loan.
Additionally, you’ll need to maintain an “acceptable” credit history. Some mortgage lenders are happy with a credit score of 580, but many prefer 620-660 or higher. If your credit score is lower, it is advisable to explore different lenders..
2. USDA loans ($0 down)
USDA mortgages are backed by the U.S. Department of Agriculture as part of its rural development program. Similar to a VA loan program, USDA loans allow for a 0% down payment, although you will still be responsible for covering the closing costs out of pocket.
To qualify for a USDA loan, you must purchase a property in a designated rural area. However, your occupation doesn’t have to be connected to agriculture in any way.
You must also have an annual income that’s low or moderate for the area where you’re buying. Not sure whether your income qualifies? Use this lookup tool to check your eligibility.
While the USDA doesn’t have a set credit score requirement, most lenders offering USDA-guaranteed mortgages require a score of at least 640. This credit score is necessary for automatic approval through the USDA’s automated underwriting system.
However, some USDA lenders might allow scores below 640 if there are compensating factors in place. These could include a lower debt-to-income ratio (DTI) or a more significant down payment.
3. Conventional loans ($9,000 down)
For those considering conventional mortgages, a conventional 97 loan allows for a minimal down payment of only 3% of the home’s purchase price. These loans are backed by Fannie Mae and Freddie Mac, the agencies responsible for establishing rules for conventional mortgages.
In case of a $300,000 home, that translates to a down payment of $9,000, which is the lowest possible unless you qualify for a zero-down-payment VA or USDA loan.
The minimum credit score requirement is 620 for a conventional loan. But it’s worth noting that individual lenders can impose higher minimums. If you find yourself being turned down with a score of 620, shop around for alternative lenders who may offer more flexible terms.
If you can qualify, conventional loans may be better than those from the FHA. That’s because they allow you stop paying private mortgage insurance (PMI) once your equity reaches 20 percent.
By contrast, FHA loans require ongoing mortgage insurance premiums (MIP) until you sell, refinance, or finish paying down your loan.
If you afford to make an initial down payment of at least 20% down on a conforming loan, you can avoid the need for PMI altogether.
4. FHA loans ($10,500 down)
When considering an FHA loan, the smallest down payment you can make is 3.5% — or $10,500 on a $300,000 home. That’s a bit higher than the down payment required for conventional loans.
As we mentioned, FHA loans require mortgage insurance premiums until you sell, refinance to a different type of loan, or simply pay the balance off, usually after 30 years.
So why do so many people choose FHA loans?
The main reason is because FHA allows credit scores as low as 580 (or 500, if you can put 10% down). This flexibility makes FHA loans an appealing option for those seeking a faster path to homeownership. And if you’ll move or refinance within the next few years, those mortgage insurance payments aren’t as big of a deal.
5. No-PMI conventional loans ($60,000 down)
Most conventional loans fall into the “conforming loan” category regulated by Fannie Mae and Freddie Mac. The minimum down payment requirement for these loans is 3%.
If you choose to make a down payment of 3% (or anything less than 20%), you’ll be paying PMI for at least a few years. But paying for PMI isn’t always a negative. In many cases, it’s better to pay PMI while you build home equity, rather than continuing to rent.
“FHA loans and programs like HomeReady have lower interest rates,” reminds Jon Meyer, The Mortgage Reports loan expert and licensed MLO. “So calculate the difference in total payments between different loan programs to see which makes more sense.”
The actual amount you will pay for private mortgage insurance (PMI) depends on factors such as your credit score and down payment. Your mortgage quotes, known as “Loan Estimates”, will provide an exact figure.
Some homeowners avoid PMI by using a conventional “piggyback loan" that allows them to put 10% down and borrow another 10% via a home equity loan. This combined down payment and second mortgage equal a 20% down payment, eliminating the need for PMI.
If cash isn’t an issue, you can go ahead and put 20% down right away. This equates to $60,000 out of pocket on a $300,000 home. By doing so, you can secure the lowest mortgage rate and significantly reduce both your monthly mortgage payments and your total interest costs.
Should I put 20% down on a $300K house?
When does 20% make sense as the down payment for a $300K house? The brief answer is: When you can afford it.
Putting down 20% on a home purchase earns you real advantages because:
- You avoid the need for private mortgage insurance (PMI)
- You’re likely to secure a lower mortgage rate compared to those with smaller down payments
- You’ll have lower monthly payments because you’re borrowing less. Your loan amount is $240,000 with 20% down as opposed to $291,000 with 3% down
- You’ll save a substantial amount over the term of the loan, resulting in a lower overall cost
A bigger down payment can also provide you with additional flexibility when qualifying for a mortgage. For example, suppose a lender wants a minimum credit score of 700. You might have some leeway with a score a few points below that if you’re putting 20% down.
Be patient and consider your options
Of course, relatively few first-time home buyers can scrape together 20 percent. And if you are unable to do so, it’s not a big deal. Monthly payments and home price inflation can help push up home equity to reach the 20% threshold, at which point you can stop paying mortgage insurance altogether.
There are valid arguments against putting down 20% on a new home. If you’re buying real estate mainly as an investment, there can be sound reasons to keep your down payment small. Additionally, if putting down 20% would deplete your savings, it’s often wiser to maintain some cash reserves for emergencies and inevitable moving expenses, such as furniture and repairs.
Down payment assistance
If you find yourself short on cash on a down payment for a $300K house, there are options available to help you. As mentioned earlier, down payment assistance (DPA) programs offer home affordability programs tailored to individuals with low to moderate household incomes.
There are thousands of these assistance programs across the country. Speak with your loan officer, real estate agent, or Realtor to find one in your area. Or if you’re in the early phases of your home buying journey, we’ve gathered DPA programs in every state just for you.
Each DPA program operates independently and establishes its own set of rules. So we can’t tell you exactly what assistance you may receive. However, it’s likely to fall into one of these categories:
- Low-interest loan that is repaid alongside your mortgage
- Forgivable loan that doesn’t have to be repaid if you remain in the home for a certain number of years
- Outright grant that never has to be repaid
Some DPAs may also contribute to your closing costs. And it’s worth noting that lenders are generally supportive of DPAs, as they are familiar with these programs and often approve them.
Gifts from family and friends
Still short on funds for a $300K house? Many lenders are usually accepting of cash gifts from family members to cover a down payment. However, it’s important to note that some are not OK with gifts from people who aren’t family members. Ask about your lender’s policy.
Keep in mind that there are guidelines associated with such gifts. The main one is that the money you receive must be a true gift and not a loan in disguise. To satisfy this requirement, your donor will have to provide a mortgage gift letter, explicitly confirming that the funds are a gift.
You’ll also need to document the transfer of funds. This involves showing the source of funds and the money leaving from your donor’s account to yours.
What’s the monthly payment for a $300K house?
At a 5% fixed interest rate, monthly payments for a $300K house might fall between $1,300 and $1,940. This is a rule of thumb, and your monthly housing payment will be determined by your credit score, the type of loan, and other financial factors.
We used The Mortgage Reports’ mortgage calculator to model the monthly payments on a $300K home. Using a 30-year fixed-rate loan at a 5% interest rate, here’s how much you might pay from month to month:
- VA loan payment: $1,935 — Zero down and a rate of 5% (no mortgage insurance)
- USDA loan payment: $1,775 — $1,715 and $60 mortgage insurance, with zero down and a rate of 5%
- Conventional loan payment: $1,877 — $1,562 and $315 private mortgage insurance, with 3% down and a rate of 5%
- FHA loan payment: $1,850 — $1,641 and $209 mortgage insurance, with 3.5% down and a rate of 5%
- 20% down conforming loan payment — $1,288: 20% down and a rate of 5% (no PMI)
Note: These examples include only loan principal and mortgage interest. they do not include additional housing costs, like property taxes, homeowners insurance, and homeowners association (HOA) dues because they vary from one region to the next.
You can use a mortgage calculator to model your own housing payments using today’s mortgage rates.
We’ve used the same mortgage interest rate (5%) for each example. However, it’s worth mentioning that different types of mortgage loans have varying rates. And mortgage rates may well have changed by the time you read this.
Furthermore, while we specified the minimum down payment for a $300K house in each case, you have the flexibility to input whatever amount you have saved as your down payment.
Home affordability FAQ
How much is the down payment for a $300K house?
You’ll need a down payment of $9,000, or 3 percent, if you’re buying a $300K house with a conventional loan. If you’re using an FHA loan, you’ll need a downpayment of $10,500, which is 3.5 percent of the purchase price. Home buyers using either a VA loan or a USDA loan can qualify for a mortgage with zero down payment on a $300K home.
How much do I need to make to buy a $300K house?
You’ll likely need to make about $75,000 a year to buy a $300K house. This is an estimate, but, as a rule of thumb, with a 3 percent down payment on a conventional 30-year mortgage at 5 percent, your monthly mortgage payment will be around $1,900. Keep in mind this figure doesn’t include home insurance or housing expenses. Also, your home buying budget will vary depending on your credit score, debt-to-income ratio, type of loan, mortgage term, and interest rate.
What is my debt-to-income ratio?
Your debt-to-income ratio, or DTI, is how much money you owe compared to how much you earn, expressed as a percentage. DTI is determined by dividing your gross monthly income (pre-tax income) by your minimum monthly debt payments, which include debt like car loans, student loans, credit card payments, and even child support. As an example, if your monthly pre-tax income is $4,000, and you have $1,000 worth of monthly debt payments, then your DTI is 25 percent.
How much house can I afford?
A good rule of thumb is that you shouldn’t spend more than 28 percent of your gross monthly income on housing costs and no more than 36 percent on total debts, including your mortgage and credit card payments. For example, if you earn $4,000 in pre-tax income and have $100 in debt repayment, then your mortgage payment shouldn’t exceed $1,340. This is known as the 28/36 rule.
Choosing the right down payment amount for you
Phew! That was a lot of information. But you’re now much better equipped to make an informed decision about the most suitable mortgage option for your needs.
Of course, many home buyers will find it easy to narrow down their options. Because you can’t get a zero-down-payment loan unless you’re eligible for one. And you can’t get a Fannie or Freddie loan unless your credit score is 620 or better.
As importantly, you can’t duck mortgage insurance unless your savings add up to a 20% down payment or you qualify for a VA loan.
So many will find their choices whittled down to one by their financial circ*mstances. And those who still have two choices will have to pick with one eye on mortgage insurance and the other on monthly payments.
You can easily learn what your options are by getting a preapproval from a mortgage lender.
FAQs
Most lenders are looking for 20% down payments. That's $60,000 on a $300,000 home. With 20% down, you'll have a better chance of getting approved for a loan. And you'll earn a better mortgage rate.
How much of a down payment do I need for a 300 000 house? ›
How much is the down payment for a $300K house? You'll need a down payment of $9,000, or 3 percent, if you're buying a $300K house with a conventional loan. If you're using an FHA loan, you'll need a downpayment of $10,500, which is 3.5 percent of the purchase price.
How much is 5 percent down on a $300,000 house? ›
If you decide to make a 5% down payment, for example, you will pay $15,000 — or 5% of the total cost of the home — upfront. Your loan amount will cover the remaining cost of the home. In this case, the loan would amount to $285,000, because $300,000 – $15,000 = $285,000.
How much of a down payment do I need for a 350 000 house? ›
A 10% down payment on a $350,000 home would be $35,000. When applying for a mortgage to buy a house, the down payment is your contribution toward the purchase and represents your initial ownership stake in the home. The mortgage lender provides the rest of the money to buy the property.
Is 30k enough for a down payment on a house? ›
The average down payment for a house in California typically ranges between 15% to 20% of the purchase price, but can vary depending on your mortgage lender and financial situation. For example, if you purchase a $1,500,000 home in La Jolla, expect to make a down payment of at least $225,000 to $300,000 on average.
Can I afford a 300k house on a 70k salary? ›
On a $70,000 income, you'll likely be able to afford a home that costs $280,000–380,000. The exact amount will depend on how much debt you have and where you live — as well as the type of home loan you get.
How to get approved for a 300k home loan? ›
8 Tips To Help You Get Approved For A Higher Mortgage Loan
- Improve Your Credit Score.
- Generate More Income.
- Pay Off Debts.
- Find A Different Lender.
- Make A Down Payment Of 20%
- Apply For A Longer Loan Term.
- Find A Co-Signer.
- Find A More Affordable Property.
It's better to put 20 percent down if you want the lowest possible interest rate and monthly payment. But if you want to get into a house now and start building equity, it may be better to buy with a smaller down payment—say five to 10 percent down.
What is 20% down on a $400000 house? ›
Making a 20 percent down payment typically allows you to get better loan terms from your mortgage lender. If you were buying a $400,000 house, you would put down $80,000 (20 percent of $400,000) towards the purchase. The lender would lend you the other 80 percent, or $320,000.
Is 5% down enough for a house? ›
The short answer is yes, it's entirely possible to buy a house in California with a 5% down payment. But there are some situations where a larger investment might be required, including borrowers who need to use a “jumbo” loan for a more expensive purchase. But for the most part, a 5% down payment is sufficient.
Monthly payments on a $300,000 mortgage
At a 7.00% fixed interest rate, your monthly mortgage payment on a 30-year mortgage might total $1,996 a month, while a 15-year might cost $2,696 a month.
What is a good down payment for a $250000 house? ›
In other words, the purchase price of a house should equal the total amount of the mortgage loan and the down payment. Often, a down payment for a home is expressed as a percentage of the purchase price. As an example, for a $250,000 home, a down payment of 3.5% is $8,750, while 20% is $50,000.
How much do you need for a down payment on a $400 000 house? ›
What income is required for a 400k mortgage? To afford a $400,000 house, borrowers need $55,600 in cash to put 10 percent down. With a 30-year mortgage, your monthly income should be at least $8200 and your monthly payments on existing debt should not exceed $981.
What credit score is good for buying a house? ›
It's recommended you have a credit score of 620 or higher when you apply for a conventional loan. If your score is below 620, lenders either won't be able to approve your loan or may be required to offer you a higher interest rate, which can result in higher monthly payments.
Can I buy a house with a 557 credit score? ›
The Federal Housing Administration (FHA) requires a credit score of at least 500 to buy a home with an FHA loan. A minimum of 580 is needed to make the minimum down payment of 3.5%. However, some lenders require a score of 620 to 640 to qualify.
Is 10k enough for a down payment on a house? ›
Conventional mortgages, like the traditional 30-year fixed rate mortgage, usually require at least a 5% down payment. If you're buying a home for $200,000, in this case, you'll need $10,000 to secure a home loan.
Can I buy a 300k house with a 100K salary? ›
A $100K salary puts you in a good position to buy a home
With a $100,000 salary, you have a shot at a great home buying budget — likely in the high-$300,000 to $400,000 range or above.
Can I afford a 300k house on a $60 K salary? ›
The usual rule of thumb is that you can afford a mortgage two to 2.5 times your annual income. That's a $120,000 to $150,000 mortgage at $60,000.
What house can I afford on 75k a year? ›
“Assuming an average interest rate and reasonable debt-to-income ratio, someone with a $75,000 salary could potentially afford a home in the range of $225,000 to $275,000,” he said.
What is the 20% down payment on a $300 000 house? ›
» MORE: Join NerdWallet to assess saving on your existing bills and help you reach your down payment goal faster. Most lenders are looking for 20% down payments. That's $60,000 on a $300,000 home. With 20% down, you'll have a better chance of getting approved for a loan.
A conventional loan requires a credit score of at least 620, but it's ideal to have a score of 740 or above, which could allow you to make a lower down payment, get a more attractive interest rate and save on private mortgage insurance.
What credit score is needed to buy a house with no money down? ›
What credit score do I need to buy a house with no money down? No-down-payment lenders usually set 620 as the lowest credit score to buy a house. You can boost your credit score by keeping your revolving charge card balances to a minimum and paying all your bills on time.
Is it bad to put 50% down on a house? ›
You are better qualified for a home loan if you have a 50 percent down payment. From a lender's perspective, borrowers who contribute a higher amount of their own money to a home purchase have more to lose than borrowers with small down payments, and therefore, are less likely to default.
Should you still put 20% down on a house? ›
You'll need to put 20% down if you want to avoid buying private mortgage insurance (PMI). PMI is insurance that protects your lender if you default on a conventional mortgage loan. Even if you don't put 20% down, you can request that your lender remove PMI once you've reached 20% equity in your home.
Is it worth waiting for a 20 down payment? ›
Calculating the Pros and Cons
Homebuyers who put at least 20% down don't have to pay PMI, and they'll save on interest over the life of the loan. Putting 20% down is likely not in your best interest if it would leave you in a compromised financial position with no financial cushion.
What is 20% down on a 200k house? ›
For example, a 20% down payment on a $200,000 house is $40,000. A 20% down payment typically allows you to avoid private mortgage insurance (PMI). The higher your down payment, the less interest you pay over the life of your home loan.
Is 20k enough for a down payment on a house? ›
To purchase a $200,000 house, you need a down payment of at least $40,000 (20% of the home price) to avoid PMI on a conventional mortgage. If you're a first-time home buyer, you could save a smaller down payment of $10,000–20,000 (5–10%). But remember, that will drive up your monthly payment with PMI fees.
What are the disadvantages of a large down payment? ›
Drawbacks of a Large Down Payment
- You will lose liquidity in your finances. ...
- The money cannot be invested elsewhere. ...
- It is inconvenient if you will not be in the house for long. ...
- If the home loses value, so does your investment. ...
- You might not have the money to begin with.
The FHA loan program requires home buyers in California to make a minimum down payment of 3.5% of the purchase price or appraised value.
Is it better to put 5 or 10 down on a house? ›
Your interest savings will be even greater. Over a 30 year term, a $300,000 mortgage generates $175,720 in interest payments when you put 5% down. No one likes that figure. By putting 10% down, that total interest payment over 30 years drops to $166,471.
Since lenders see you as less of a risk with a larger down payment, you may get a better interest rate. Lenders love borrowers with smaller mortgages (and therefore bigger down payments), because it means they'll be likely to sell the house for more than the mortgage amount in case of a foreclosure.
Will interest rates go down in 2023? ›
“We expect that 30-year mortgage rates will end 2023 at 5.2%,” the organization noted in its forecast commentary. It since has walked back its forecast slightly but still sees rates dipping below 6%, to 5.6%, by the end of the year.
How much house can I afford on $60 000 a year? ›
How much of a home loan can I get on a $60,000 salary? The general guideline is that a mortgage should be two to 2.5 times your annual salary. A $60,000 salary equates to a mortgage between $120,000 and $150,000.
How much is a monthly payment on a 200K house? ›
As far as the simple math goes, a $200,000 home loan at a 7% interest rate on a 30-year term will give you a $1,330.60 monthly payment. That $200K monthly mortgage payment includes the principal and interest.
Is $25,000 enough for a down payment on a house? ›
But for the most part, the minimum investment comes to 3% of the purchase price. Applying that percentage to the current median home price in California ($833,910) would equal a down payment of around $25,000.
What is considered a high down payment on a house? ›
Benefits of putting more than 20% down
If you're able to do so, you may want to consider putting down a payment that's larger than 20%. Here are some of the benefits: Lower monthly payment due to no mortgage insurance and smaller loan amount. Less interest paid over the life of the loan.
What is the average payment on a $250 000 house? ›
Monthly payments for a $250,000 mortgage
On a $250,000 fixed-rate mortgage with an annual percentage rate (APR) of 4%, you'd pay $1,193.54 per month for a 30-year term or $1,849.22 for a 15-year one.
How much is a 3.5 down payment on a 500K house? ›
Realtor states that most loan programs that will provide you with a mortgage to purchase your home choose the down payment price of 3 to 3.5% of the total price of the home. For a house that costs around $500K, this means you must have between $15,000 and $17,500 for the down payment alone.
How much would I get approved for a house? ›
Using a percentage of your income can help determine how much house you can afford. For example, the 28/36 rule may help you decide how much to spend on a home. The rule states that your mortgage should be no more than 28 percent of your total monthly gross income and no more than 36 percent of your total debt.
How much income do you need to qualify for a $600 000 mortgage? ›
Following this logic, you would need to earn at least $300,000 per year to buy a $600,000 home, which is twice your salary. “Other rules say you should aim to spend less than 28% of your pre-tax monthly income on a mortgage,” says Hill.
The Bottom Line. Obtaining a mortgage will affect your credit score, and while it might dip slightly at first, your credit score can improve by making consistent, timely mortgage payments every month. Once your credit score is on the rise, you'll likely see better terms and interest rates for future loans you take on.
How big of a loan can I get with a 720 credit score? ›
You can borrow $50,000 - $100,000+ with a 720 credit score. The exact amount of money you will get depends on other factors besides your credit score, such as your income, your employment status, the type of loan you get, and even the lender.
How much can you borrow with a 700 credit score? ›
The average credit limit for those with a 700 credit score is right around $4,500. However, if you were to pull out a 700 credit score personal loan, you should be able to access more money than you would with just a credit card.
What is a bad credit score? ›
In the FICO scoring model, scores range from 300 to 850. This number represents the likelihood that a borrower will repay a loan. If your credit score lands between 300 and 579, it is considered poor, therefore lenders may see you as a risk.
What is the credit score for FHA loan? ›
An FHA loan requires a minimum 3.5% down payment for credit scores of 580 and higher. If you can make a 10% down payment, your credit score can be in the 500 – 579 range. Rocket Mortgage® requires a minimum credit score of 580 for FHA loans.
What is the minimum credit score for FHA loan? ›
To qualify for an FHA-insured loan, you need a minimum credit score of 580 for a loan with a 3.5% down payment, and a minimum score of 500 with 10% down. However, many FHA lenders require credit scores of at least 620.
How can I avoid a large down payment on my house? ›
One of the ways that lenders help borrowers with little or no down payment is to provide them with what is commonly known as a piggyback loan. In this type of program, the borrower receives a mortgage loan equal to 80% of the home's purchase price and a second mortgage loan that is equal to 23% of the purchase price.
How much is a downpayment on a 150k house? ›
So, to safely afford a $150,000 mortgage, most experts recommend making at least $40,000 to $50,000 per year to account for other costs like taxes and insurance. Plus, you want to save for a down payment and closing costs. Most lenders recommend putting down 20%, which is $30,000.
How much do I need to make for a 200k mortgage? ›
You need to make $74,006 a year to afford a 200k mortgage. We base the income you need on a 200k mortgage on a payment that is 24% of your monthly income. In your case, your monthly income should be about $6,157. The monthly payment on a 200k mortgage is $1,480.
What is the minimum down payment on a $250000 house? ›
In other words, the purchase price of a house should equal the total amount of the mortgage loan and the down payment. Often, a down payment for a home is expressed as a percentage of the purchase price. As an example, for a $250,000 home, a down payment of 3.5% is $8,750, while 20% is $50,000.
To purchase a $200,000 house, you need a down payment of at least $40,000 (20% of the home price) to avoid PMI on a conventional mortgage. If you're a first-time home buyer, you could save a smaller down payment of $10,000–20,000 (5–10%). But remember, that will drive up your monthly payment with PMI fees.
What is a good down payment for a 200k house? ›
Conventional mortgages, like the traditional 30-year fixed rate mortgage, usually require at least a 5% down payment. If you're buying a home for $200,000, in this case, you'll need $10,000 to secure a home loan.
How much does a couple need to make to buy a $200 K house? ›
What income is required for a 200k mortgage? To be approved for a $200,000 mortgage with a minimum down payment of 3.5 percent, you will need an approximate income of $62,000 annually.
What is the average payment on a $250000 house? ›
Monthly payments for a $250,000 mortgage
On a $250,000 fixed-rate mortgage with an annual percentage rate (APR) of 4%, you'd pay $1,193.54 per month for a 30-year term or $1,849.22 for a 15-year one.
How do I figure out my down payment? ›
How do you calculate down payment? Down payment is calculated using the formula: down payment = down payment percent times purchase price. The down payment percent needs to be converted into a decimal for this calculation.
Can I afford a 200k house on 50K? ›
You can generally afford a home between $180,000 to $250,000 (perhaps nearly $300,000) on a $50K salary. But your specific home buying budget will depend on your credit score, debt-to-income ratio, and down payment size.
Is it worth putting 20% down on a house? ›
Putting down 20% on a home purchase can reduce your monthly payment, eliminate private mortgage insurance and possibly give you a lower interest rate.
How much money should I save before buying a house? ›
How Much Money Do You Need to Buy a House? A good number to shoot for is saving 25% of the sale price, in addition to setting aside 3–6 months' worth of your typical expenses for emergencies. So if you're looking to buy a $300,000 house, you should save around $75,000 (on top of your emergency fund).
How much house can I afford if I make $36,000 a year? ›
For example, if you make $3,000 a month ($36,000 a year), you can afford a mortgage with a monthly payment no higher than $1,080 ($3,000 x 0.36). Your total household expense should not exceed $1,290 a month ($3,000 x 0.43). How much house can I afford with an FHA loan?
