Whether you're buying your first home, a cabin near the lake, or a hunting property up north, one of the biggest questions buyers ask is: How much do I need to save for a down payment?
The answer depends on a few key factors—like the type of loan you're using, the kind of property you're buying, and your financial goals. Here's a breakdown to help you plan and purchase with confidence.
💰 What Is a Down Payment?
A down payment is the amount of money you pay upfront when purchasing real estate. It’s typically expressed as a percentage of the purchase price. The more you can put down, the less you’ll need to borrow—and the stronger your offer may look to sellers.
🏡 Typical Down Payment Amounts
| Loan Type | Minimum Down Payment |
|---|---|
| Conventional Loan | 3% – 20% |
| FHA Loan (Government-backed ) | 3.5% |
| VA Loan (for veterans) | 0% |
| USDA Loan (for rural properties) | 0% |
| Land Loans | 15% – 25% or more |
🔍 How Property Type Affects Your Down Payment
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Primary residences often qualify for the lowest down payments.
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Second homes or vacation cabins may require 10% or more.
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Investment properties (like rentals or short-term vacation homes) usually require 15-25% down.
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Acreage or rural land can come with stricter requirements—especially if it lacks access, utilities, or improvements.
At Great Lakes Realty and Auction, we frequently help buyers navigate loans for unique properties across Michigan, from Lake Huron waterfront homes to wooded recreational tracts.
💡 Other Costs to Budget For
Down payment isn’t the only upfront cost. Be sure to also save for:
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Closing costs (usually 2–5% of the purchase price)
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Home inspection & appraisal fees
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Loan application fees
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Moving expenses or land improvements
📊 Tips to Save Faster
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Set a monthly savings goal based on your price range.
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Open a separate savings account just for your down payment.
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Cut unnecessary expenses and redirect the funds.
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Look into down payment assistance programs—especially if you’re a first-time buyer.
🏠 Need Help Getting Started?
At Great Lakes Realty and Auction, we understand that every buyer’s situation is different. Whether you're saving for your forever home, an off-grid cabin, or a land investment, we’ll help you connect with lenders and guide you through the entire buying process.
Have questions about financing or available properties?
Give us a call or explore current listings on our website to get started.