FHA minimum down paymentAs low as 3.5%For eligible borrowers; other costs and rules apply.
Lender comparisonMultiple estimatesUse comparable Loan Estimates.
Budget includesMore than P&ITaxes, insurance, maintenance and other housing costs matter.

1. Build the budget before shopping

Include principal and interest, property taxes, homeowners insurance, possible mortgage insurance, HOA dues, maintenance and utilities. Keep money aside for closing costs and post-closing emergencies instead of putting every available dollar into the down payment.

2. Understand your loan options

Conventional, FHA, VA and USDA mortgages have different eligibility rules and cost structures. HUD materials note that FHA-insured mortgages may allow down payments as low as 3.5%, but mortgage insurance and other program rules still matter.

3. Compare lenders after you have a property in mind

The CFPB recommends requesting Loan Estimates from multiple lenders for comparable loans. Compare rate, monthly payment, cash to close, points, lender credits and the five-year cost of borrowing.

4. Protect the cash buffer

Homeownership adds irregular expenses that renters may not face directly. A repair reserve and emergency fund can be as important to sustainability as qualifying for the mortgage itself.

RUN THE NUMBERS

Use the Plandime calculator

A borrowing decision is easier to judge when you compare the monthly payment with the total cost.

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