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The Home Down Payment Explained
When you buy a house you have to have enough money upfront to put down which is called a down payment.  These days putting down at least 20% of the sale price for a down payment is normal. However, there are cases where a person may qualify for 0% down payment, but you must have a credit score range of 700 or over. In addition, those who qualify for Veterans (VA) loans may also get a down payment waver depending on the lender.
   
Lenders (banks) use the down payment as a safety gauge. There was a study done showing the correlation between those who can't make a down payment and their tendency to default on their loans. The lenders reasoning for down payments are; if a person can't afford a down payment then they can't possibly save their money for a monthly mortgage. They contend if  you cannot  pay for a down payment then they most likely cannot afford a mortgage either.
   
It's almost a given that if one does not pay a down payment that the monthly payments will run higher. The less you put down in the front the more it will cost monthly when ... more

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