In today’s B’s Finance Minute, let’s talk about how much downpayment do you need when buying your principal residence. Downpayment if you qualify is 5% for properties worth $500,000 and below. This is true even if it’s Your 2nd, 3rd or 4th home etc as long as you are buying to live in it as your main home. If the property costs more than $500,000, then your downpayment has to be 5% of the $500K and then 10% of anything above $500K.
For example for properties worth $600K then it’s $25K for the first $500K and then $10K for the $100K above $500K. Downpayment for $600K Is $35K and if the purchase price is $700K then it’s $45K. If the property is worth $1MM then the downpayment has to be 20% or $200,000. If the property value is more than $1.5MM, let’s talk – it gets more complicated. This is B’s Finance Minute. My intention in this blog is to create a positive lasting difference. Share this so you can too!