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How can I minimize the down payment for my home purchase?

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  Answers  |  1

May 02, 2016

Certainly most everyone buying prefers more home for less money. Also, most every seller wants more money for less home. Well, a lower down payment can be accomplished in many ways. Credit score, debt-to-income (DTI) ratio, loan-to-value (LTV) ratio, appraisal of the home, etc.

Now lets look at the other side of the equation - VALUE. what are you getting in return for your down payment? Also, what can you offer the note holder in return for that lower down payment?

I recently met with a newly minted (just passed the CPA exam) Accountant with 3 children. He wanted a $400,000 new-construction home for a $20,000 down payment and the seller to cover all closing costs. The lender discovered that his current mortgage was in foreclosure. Hence, the request for a 5% down payment. He is now renting an apartment while 20% of his paycheck goes toward paying off the remaining balance after foreclosure.

Feel free to contact us for more information. No obligation.

It's not what you make, it's what you keep that determines your lifestyle.

$commenter.renderDisplayableName() | 02.25.17 @ 22:58

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