How much deposit does a first time buyer need on a house these days?

Me %26amp; My partner are looking to buy our first house together, how much will we require to get a deposit these days, both have a stable income.





Thanks|||You need down payment and possibly closing costs. 20% down is ideal, but there are lower downpayment programs available.|||In the UK the amount of deposit has become central to deciding not only what rate you can get but also whether you will qualify for a mortgage at all. A few years ago mortgages offering 95-100% of the purchase price (and even beyond!) were commonplace but the credit crisis has had a dramatic impact.





Recently, there has only been a handful of products available to 95% loan to value (the mortgage as a proportion of the purchase price). There has been some improvement in the number of deals up to 90% loan to value but many lenders are still offering a maximum of 85%.





The interest rates on offer at the higher loan to value brackets will be higher than for those that can pull together a bigger deposit and credit scoring requirements will be more stringent. For example, a 2 year fixed rate at 90% loan to value will be at least 2% higher than to those with a 25% deposit.


The bottom line is that a first time buyer will need at least 10% but the bigger the deposit the better.








Disclaimer:


The answers above are for guidance only and should not be acted upon without you receiving professional mortgage advice relevant to your circumstances. To find an independent mortgage adviser please go to http://www.unbiased.co.uk|||In England/Wales you can find deals with 90% LTV (ie 10% + fees required) BUT they usually have high arrangement fees, high interest rates and punitive escape clauses.





If you can get together 25% you will get a much more affordable deal and afford a better house for the same mortgage payment.|||FHA requires a down payment of 3.5% of the purchase price. That is the least expensive loan type that is regularly used. There are also some 100% loans available in certain locations, and for certain programs. Your best best is to talk to a few local lenders that can give you a solid idea of what your purchase price should be under to keep your payments comfy and what loan type would serve your goals.





Good luck. Buying is very smart right now because interest rates are awesome and purchase prices are desirable.





If you want tips and tricks to build your credit, go to http://www.fixcreditscorerating.com|||20% is the common rate, but scour tirelessly because there are plans with lower or flexible terms.|||20% seems to be about the minimum, there might be some with 10% but higher interest.|||We got accepted with 33%, I would make sure you have plenty.