Buying your first home is an exciting milestone, but saving up for a down payment can feel daunting. If you’re wondering if you can buy a house with a $50,000 deposit, the answer is yes! While 20% is ideal, putting down as little as 3% is possible with certain mortgage programs.
As a first-time buyer with $50k in the bank, you have excellent options to turn your deposit into homeownership. Let’s break down how far a $50,000 down payment can go towards buying a house.
How Much House Can $50,000 Buy?
With $50,000 to put down, you can comfortably afford a home between $200000 and $300,000 depending on factors like
- Your income, credit score, and debts
- The mortgage interest rate you qualify for
- Whether you use loan programs like FHA, VA, or USDA
For example, here’s how far $50000 could go towards buying a house in different scenarios
- Putting $50,000 as a 20% down payment on a $250,000 home
- Putting $50,000 as a 10% down payment on a $500,000 home
- Putting $50,000 as a 25% down payment on a $200,000 home
The more you put down, the lower your monthly mortgage payment will be. But even putting 10% down keeps your options open in many markets.
How Does a $50k Down Payment Compare?
Here’s how a $50,000 down payment stacks up against other common scenarios:
- The average down payment is around 10% of the purchase price. On a $300,000 home, that’s $30,000. So $50k gives you extra leverage.
- First-time buyers often put down around 6%. On a $300,000 home, that’s $18,000. With $50k, you can put down more.
- The minimum requirement for conventional loans is 3.5%. That’s just $10,500 on a $300,000 purchase.
A $60,000 down payment on a $300,000 home is ideal, but a $50,000 down payment still gives you options that are better than average and the bare minimum.
What Mortgage Programs Work with a $50k Down Payment?
Several mortgage options allow down payments of $50,000 or less:
Conventional 97: Requires just 3% down. Ideal for excellent credit.
FHA loan: Requires 3.5% down. Popular for low down payments.
VA loan: No minimum down payment for veterans. Closing costs only.
USDA loan: 100% financing available in eligible rural areas.
HomeReady: 3% down payment option from Fannie Mae. Must meet income limits.
State/local programs: Down payment grants may be available in your area.
Shop around and get pre-qualified to find the best mortgage program for your $50k down payment.
How Much House You Can Afford with $50,000
As a general guideline, you can afford a home price that’s about 2.5 times your household income. But the amount varies based on factors like:
Your income: Higher incomes allow more house. Adjust expectations if your income is under $100k.
Debts: The more debt you have, the lower mortgage amount you can qualify for.
Interest rate: Lower rates equal lower payments, allowing you to afford more house. Aim for the best rate.
Taxes and insurance: Account for all monthly housing costs when budgeting.
Location: Houses cost significantly different amounts depending on the real estate market.
Use an affordability calculator to estimate the home price and monthly payments you can afford based on your financial details.
Steps to Buying a House with a $50k Down Payment
If you’re ready to buy a home with a $50,000 down payment, follow these steps:
Get pre-approved for a mortgage based on your income, assets, debts, and credit score. This tells sellers you’re a serious buyer.
Shop for homes within your pre-approval amount. Focus on houses priced between $200k-$300k based on your budget.
Make an offer once you find the right home. Submit an offer for the list price or below.
Negotiate any needed repairs or closing cost assistance with the sellers.
Finalize the purchase by securing financing, getting an appraisal, conducting an inspection, and signing closing documents.
Bring your $50,000 check to closing to provide your down payment and cover closing costs.
Estás ingresando al sitio de U.S. Bank en español Algunos materiales y servicios podrían estar disponibles solamente en inglés. Los enlaces incluidos en esta comunicación podrían dirigirte a sitios web en inglés.
This down payment calculator provides customized information based on the information you provide. But, it also makes some assumptions about mortgage insurance and other costs, which can be significant. It will help you determine what size down payment makes more sense for you given the loan terms.
See how much you might be able to borrow.
A down payment is a portion of the cost of a home that you pay up front. It demonstrates your commitment to investing in your new home. Generally, the more you put down, the lower your interest rate and monthly payment. There are also low or no-down payment options available on certain types of mortgage products, to qualified home buyers. Use this down payment calculator to help you answer the question “how much should my down payment be?”.
Estimated monthly payment and APR example: A $225,000 loan amount with a 30-year term at an interest rate of 3.875% with a down-payment of 20% would result in an estimated monthly payment of $1,058.04 with an Annual Percentage Rate (APR) of 3.946%.1
I Have $60,000 and Don’t Know What To Do With It
FAQ
Is 50k saved up enough to buy a house?
When saving for a house, a good number to aim for is 25% of the sale price to cover your down payment, closing costs, and moving costs. So if you’re looking to buy a $300,000 house, you should save around $75,000 (in addition to 3–6 months of your typical expenses in an emergency fund).
How much house can I afford with $50,000 down?
With a $50,000 down payment, and assuming a 6. 75% interest rate and a 28% front-end debt-to-income ratio, you could potentially afford a home around $250,000.
What is the minimum deposit to buy a house?
Deposit savings Ideally, you should save as much as possible before buying a home. The minimum required deposit is 10%, but aim for 20% if possible. If you’re borrowing more than 80%1 of the property value, you’ll need to take out Lenders’ Mortgage Insurance or Low Deposit Premium.
Can I buy a house with $50,000?
This suggests you could potentially afford a home priced at approximately $250,000. Your $50,000 would pay a 15% down payment of $37,500 with the remainder going for $12,500 in closing costs, which typically range from 2% to 5% of the purchase price.