A down payment is the amount of money, including initial deposit, you put towards the purchase price of a home.
Many times, especially the first time time buyers comes up with the question of how much down payment. They will ask, can I buy a property with 5% down payment? The following scenarios will clear your doubts.
Please have a closer look.
- For homes that cost up to $500,000, the minimum down payment is 5%
- For homes that cost between $500,000 and $1,000,000, the minimum down payment is 5% of the first $500,000 plus 10% of the remaining balance
- For homes that cost over $1,000,000, the minimum down payment is 20%
For down payments of less than 20%, home buyers are required to purchase mortgage default insurance.WORX WX944L 20V Powershare Drill & Impact Driver combo Kit | eBay