Rent or buy: the money you'll need down

When you are looking for a new place to live, you have many options.

As you try to decide whether to rent or buy, the money needed down is an important concern.

When you are looking for a new place to live, you have many options. As you try to decide whether to rent or buy, the money down needed is an important concern. The only way to move is to have money set aside.

As you debate buy vs. rent , you must also think about how much money you have in savings. With renting an apartment or a house, you often need to pay an application fee. This ranges from about $15 to $60 depending on the city you live in and building you want to move into. After your application is approved, usually have to pay a deposit when you sign the lease. This can range from a few hundred dollars to a full month's rent. Some landlords also want the last month's rent paid up front.

You may prefer to buy a house, but think that you can't afford home ownership. Financial experts say that in most markets, if you can afford to rent, you can afford to make mortgage payments on a home. If you want to get a bargain on a home, you might want to buy a foreclosed home. These homes are often bank-owned properties that are priced at below market value.

If you're researching whether to rent or buy, the money down you need is important. Fortunately, if you don't have much money, the U.S. Department of Housing and Urban Development (HUD) has many programs to help you pay a low down payment and get competitive interest rates on a mortgage. HUD doesn't lend money for you to purchase a home, it offers mortgage insurance through the Federal Housing Administration (FHA). This mortgage insurance guarantees that a lender will get its money back if you default on your loan. An important advantage of FHA mortgages is that a typical down payment is only 3.5 percent of the purchase price.

If you are a veteran deciding whether to rent or buy, money down isn't needed in some cases. The Department of Veterans Affairs (VA) offers programs to help you buy a home. With these programs you don't have to put down any money to buy a house. You just need to be able to pay the mortgage.

If you are ready to move, and deciding whether to rent or buy, money down is required in either situation. The amount of money you need depends on how much rent you can afford or how much of a mortgage you can get. If you are ready to buy now, get free real estate listings at RealtyNow.