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Getting started in the world of homeownership can be both thrilling and intimidating. One of the biggest hurdles for many aspiring homeowners is the down payment. However, what is the actual down payment required for a $350,000 home?
The answer, like most things in finance, is: it depends.
Several factors influence the down payment amount including your credit score, the type of loan you choose, and your individual financial situation. However we can break down the possibilities and help you understand what to expect.
Here’s a breakdown of the down payment scenarios for a $350,000 house:
20% Down Payment:
- The ideal scenario: Putting down 20% is often recommended as it allows you to avoid private mortgage insurance (PMI). PMI can add hundreds of dollars to your monthly mortgage payment.
- Down payment amount: $70,000
- Benefits: No PMI, lower monthly payments, building equity faster.
10% Down Payment:
- A common option: Many lenders offer loans with 10% down payments, making homeownership more accessible.
- Down payment amount: $35,000
- Considerations: You’ll likely have to pay PMI, which increases your monthly payments.
3.5% Down Payment (FHA Loan):
- Ideal for first-time homebuyers: FHA loans require only a 3.5% down payment, making them attractive to those with limited savings.
- Down payment amount: $12,250
- Considerations: You’ll pay PMI and potentially higher interest rates.
0% Down Payment (VA Loan):
- Available to veterans and active-duty military: VA loans offer a unique opportunity to purchase a home with no down payment.
- Down payment amount: $0
- Considerations: You may need to pay funding fees and other closing costs.
Beyond the Down Payment:
- Remember, the down payment is just one piece of the puzzle. You’ll also need to factor in closing costs, which can range from 2-5% of the purchase price.
- Saving for a down payment takes time and planning. Start budgeting and exploring your options early on.
- Don’t be afraid to seek help. Mortgage lenders and financial advisors can guide you through the process and help you choose the right loan for your needs.
Here are some additional resources to help you on your homeownership journey:
- Texas United Mortgage: https://www.texasunitedmortgage.com/resources/how-much-is-the-down-payment-for-a-350000-house
- Moreira Team Mortgage: https://moreirateam.com/blog/how-much-is-the-down-payment-for-a-three-hundred-and-fifty-thousand-dollar-house/
- Down Payment Resource Center: https://www.downpaymentresource.com/
Remember, buying a home is a significant investment. Take your time, do your research, and choose the option that best fits your financial situation and long-term goals.
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The median home sale price as of September is $394,300, according to the National Association of Realtors. However, the median indicates that half of the homes sold for more and the other half for less; many homes nationwide are selling for about $350,000.
However, the amount of income required to purchase a $350,000 home will vary depending on a number of factors, such as the size of your down payment and the mortgage interest rate. Here’s how to find out the income needed for a $350K house.
Income to afford a $350K house
Start with the 28/36 rule to determine how much you must make for a $350,000 home purchase. According to this recommendation, your monthly housing expenses should not exceed 28 percent of your gross income, and your total debt, housing included, should not exceed 36 percent of your monthly income.
Bankrate’s mortgage calculator can help you figure out how a $350,000 purchase breaks down. Assuming a 20 percent down payment on a 30-year mortgage at a 7. 5 percent interest rate, the monthly principal and interest payments come to $1,957. Remember to factor in additional costs that may differ based on your location, such as real estate taxes, homeowners insurance, and possible HOA dues. Let’s round that $1,957 up to $2,500 to account for those.
Multiply that monthly payment of $2,500 by 12 and you have an annual housing expense of $30,000. Three times that annual amount is roughly a third of your income, which means you would need to earn about $90,000 to comfortably afford a $350K home in order to stay within the 28/36 rule. (But keep in mind that your down payment and closing costs are not included in this computation; they must be paid in advance.) ).
Your options may be a little more constrained than they would be at a higher price point because $350,000 is less than the national median home price. However, the location of your search plays a critical role here: in certain markets, your budget will stretch much further than in others. For example, Redfin data shows that in September, the median home price in Houston was $328,000, which is quite close to your target price. It was over $900,000 in San Diego, though, so you won’t get nearly as much for your money there.
How Much Do You Need To Make To Buy A 350k House
FAQ
What is a good down payment on a 300K house?
What credit score do I need to buy a 350k house?
How much house can I afford if I make 350k a year?
How much should I put down on a 350k house?
How much down payment do you need for a 350,000 mortgage?
The down payment needed for a $350,000 mortgage will vary depending on which type of loan you choose and the purchase price of your home. For example, if you buy a home for $380,000, you’ll need to make a down payment of $30,000 to end up with a $350,000 mortgage.
What is a typical down payment on a house?
The typical down payment on a house is between 3% and 20% of the purchase price. The amount you’ll be required to put down may vary depending on the loan program you use to finance the home purchase. Government-backed loans like VA and USDA allow for down payments as low as 0%.
How much is a mortgage on a 350,000 home?
Assuming you have a 20% down payment ($70,000), your total mortgage on a $350,000 home would be $280,000 . For a 30-year fixed mortgage with a 3.5% interest rate, you would be looking at a $1,257 monthly payment. Please keep in mind that the exact cost and monthly payment for your mortgage will vary, depending its length and terms.
What if my down payment is less than 20%?
If the down payment is less than 20%, mortgage insurance may be required, which could increase the monthly payment and the APR. Estimated monthly payment. Estimated monthly payment does not include amounts for taxes and insurance premiums and the actual payment obligation will be greater.