How to Save for a House Down Payment
How to Save for a House Down Payment by TSD Contributor Updated on 03.21.18 Housing Loans Saving Money Advertiser Disclosure While mortgage lenders understandably tightened up their credit criteria in the wake of the housing crisis, saving for a new home has since become easier. Both Fannie Mae and Freddie Mac now buy mortgages with down payments as low as 3% of the purchase price , a big drop from the old 5% minimum. While it’s easier to qualify for a conforming loan when down payment requirements have been reduced, it’s still better to put as much money down as you can — the bigger your down payment, the lower your monthly mortgage payment will be. And even 3% of a $300,000 home is a pretty big chunk of change. Plus, there’s the matter of saving not only for a down payment but also for closing costs and a reserve fund for the inevitable repairs and other expenses that come with home ownership . Saving so much mo...