Generally, 20 percent is considered a standard down payment for a home. But just because 20 percent is the standard doesn’t mean that every homeowner puts 20 percent down when buying a home. There are many buyers out there that successfully purchase a home with less than a 20 percent down payment, as well as many buyers who choose (or are required) to put down more than 20 percent.  Keep in mind, lower down payments are generally options for your primary residence as most second home or investment purchases can require more than 20% down.  

But what, exactly, does that mean for your home purchase?

A recent article from realtor.com outlined things to know when your down payment is below, at, or above 20 percent, including:

• Below 20 percent. If you’re not able to come up with a 20 percent down payment, not to worry! There are plenty of loans that allow you to buy a home with a smaller (or even no!) down payment, including FHA loans, USDA loans, and VA loans.
• At 20 percent. If you have 20 percent to put down on your home purchase, you avoid paying private mortgage insurance, which can save you hundreds of dollars per month. You may also get a better interest rate on your loan, which provides additional savings.
• Above 20 percent. Some people choose to put more than 20 percent towards a down payment, which will lower the amount you owe on your mortgage and lowers your monthly cost. But some people don’t have a choice; if you have a low credit score, your lender may require you to pay more than 20 percent for a down payment when buying a home.

It is important to work with a lender who has a proven track record of success in the area you are buying property.  This is especially true in Mammoth Lakes.  Preferred Lenders will take you to a few of these lenders.