 TITLE: Where Should You Save Your Down Payment Money? CONTENT: How Much Do You Need to Save for a Down Payment?\n------------------------------------------------\nWhile you may think of 20% as the standard down payment, the National Association of Realtors reports that first-time home buyers who get a mortgage typically finance 93% of their home purchase, which roughly means a 7% down payment. A 20% down payment may offer benefits—including the ability to forgo mortgage insurance—but it's not a requirement. Conventional mortgages can be had with as little as 3% down. Some government-backed loans, such as those offered through the Federal Housing Administration and the Department of Veterans Affairs, offer financing with low or no down payment.\nYou don't have to wait until you're ready to buy a home to explore how much house you can afford. Understanding how your income, credit, monthly expenses and down payment all work together can help you determine how much you'll need to save. Two dynamics to keep in mind:\n1.  A larger down payment means a smaller mortgage. The more you pay upfront, the less you'll have to finance. That means less income to qualify for a loan and lower monthly payments.\n2.  A smaller down payment can mean buying a home sooner. If you handle a larger mortgage and bigger monthly payment, saving less will save you time. On a $350,000 home, the difference between a 3% down payment and a 20% down payment is $59,500, so it's plain to see why a smaller down payment can trim years off your home purchasing timeline. END