There are many ways to come up with funds for down payment, there are at least 6 Down Payment Assistance programs alive and well in my town, check out your area. Some loans allow you to borrow the needed funds, as long as it is a secured loan. Careful the new payment gets added to your debt ratios.
In order to avoid PMI (mortgage interest) a minimum of 20% down is needed. If the property is eligible for an FHA loan (government loan) than the minimum down payment requirement is 3.5% currently but you still have to pay the mortgage interest.
I suggest that you contact a mortgage broker or banker to learn more on what types of loans you would qualify for and what the requirements are. They will speak to you at no cost and you are not obligated to use them.
Hope this is helpful.
Prudential Connecticut Realty
There are a few options out there. Conventional loans range anywhere from 5% and up. However to avoid PMI (Private Mortgage Insurance) at least 20% equity or 20% down payment is needed. FHA is 3.5% down and typically requires a credit score of at least 640 (general guidelines, some lenders have different programs).
If you are looking for a condo or Townhome (without Fee Simple ownership) go to https://entp.hud.gov/idapp/html/condlook.cfm to check if the complex is FHA Approved.
I work with a lender that has a program that is only 2% down payment with NO PMI. However, the household income would need to be below $58,000 i believe.
I would be glad to share more info with you or even help you with your home search (the Palatine area is my primary market).
Give me a call 630.429.4486 . :)
Why set the bar so low, "get an idea of what the minimum expected down payment" Did you get your solid employment history going to work every day asking, "how little can i get done today and still get promoted?" I doubt it, you went in and said, I will work harder, smarter and do it with a smile on my face, joy in my heart and everyone will want to promote me and work with me and want me on their team! I suggest you approach home ownership the same way. Give it your all, save, save, save some more! I am a fan of financially responsible homeownership. (oh by the way, i had to learn this the hard way, that's what i don't want for others!!) What does that look like. It looks like 20% down, yes it is true! OH, also this can be done in less than 24 months if you are currently earning $45K a year or more...i promise, i am living proof of this. HOW you ask...well please read many, all, most of my blogs i write. This topics is so close to my heart there is little that comes in the way of my desire to help others understand.
Here is a blog i wrote about those who think 3.5% down is enough...UGH
Here is a blog about how to get 20% in less than 24 months!!
Enjoy! Best of luck to you. PS, you don't need luck with you good credit and good job, you just need patience!