Pensacola, FL Down Payments 101

Deciding whether or not to make a down payment on your new Pensacola, FL home can be a tough judgment to make. After you decide if you will make a down payment, you have to figure out how much money you can/ or will put down.  Don’t stress out trying to comprehend what to do; we can help you figure it out.

What is a Down Payment?

The amount of money a home buyer pays out of their pocket, when buying a house, is called a down payment. If you are taking out a loan to buy your new Pensacola home, your loan will not cover the down payment. For some loans, a down payment is required while others do not have a down payment. Your down payment is used toward the price of your home.

How Much Should My Down Payment Be?

The down payment on your Pensacola, FL home will be determined by the kind of loan you have—FHA, VA, or Rural Development. If you are trying to buy a Pensacola foreclosure or Pensacola short sale, your down payment could be anywhere from 0%-20%.  Your credit can also affect how much your down payment will cost, so talk to your lender to see how much you should expect to pay. After talking to your lender, you will know how much money you need to save up.

When your lender tells you how much is required as a down payment, you have the option of paying more than what is required. By paying a larger payment, you can potentially lower your monthly mortgage payments. Paying a larger down payment will allow you to take out a smaller loan, making the payments smaller than they would have been originally.

Down Payment Rules and Regulations

A down payment must be paid by you, the Pensacola home buyer. The seller of a home cannot pay the down payment of a home because it will be considered an increase to the sales price of the home. However, the seller can pay your closing cost if they would like to help you reduce the amount of cash you pay on any of the extra expenses. The seller paying the closing cost will allow the buyer to have more cash to use towards the down payment.

 A family member can gift you cash to pay for the down payment as long as it is clear to your lender that it truly is a gift and not a loan. The lender must also have proof of how the money originated. Make sure you review the IRS rules of gifting money to insure you do not have to pay extra taxes and penalties on the money gifted to you.

If you would like to calculate how much a down payment will change the mortgage payment, please visit our Mortgage Calculator at the bottom of our Blog home page.

Greater Pensacola, FL Real Estate Experts – Making It Happen for Buyers and Sellers!

Grand Realty is a greater Pensacola real estate company that opened its doors in June of 2003. We strive to help all of our clients with their individual real estate needs, whether it’s buying a home in Pensacola FL and the surrounding area or selling their existing Pensacola property.

We have approximately 30 agents with a wide range of specialties that include:

  • Pensacola new home buyers
  • Pensacola short sales
  • Pensacola Foreclosures
  • Pensacola Investment properties
  • Pensacola commercial properties
  • Pensacola vacant land
  • Pensacola water front properties

Grand Realty is also proud to say we have agents who are bilingual, Spanish and Chinese that are placed throughout a good majority of Northwest Florida including Pensacola, Milton, Pace, Navarre, Perdido Key, Jay, Cantonment, Gulf Breeze, and Navarre. The Broker of Grand Realty is also licensed in Alabama. Please feel free to email or give us a call, and from everyone at Grand Realty, thanks for your business!

Grand Realty
4843 West Spencer Field Road, Pace, FL 32571
Office Phone: 850-995-3222
Office Fax: 850-995-3221
Email: Office@GrandRealty.net

Map of Pensacola, FL


View Larger Map