A typical range of $20,000 to $35,000
For homes available through Alamo Home Source, the down payment is typically between $20,000 and $35,000, depending mainly on the price of the property and the specific financing terms.
This range is a general reference. The required amount may be different depending on the home selected, purchase price, and final transaction structure.
It is completely acceptable to provide a larger down payment. Contributing more can reduce the balance that will be financed and, depending on the agreed terms, may help make the monthly payment more manageable. Buyers should still consider keeping a reserve for moving, maintenance, and other expenses after purchasing the home.
Part of the down payment covers closing costs
The full down payment is not applied to the purchase principal. Typically, between $6,000 and $10,000 of the amount provided is used for closing costs and financing origination expenses.
The remaining amount is applied to principal, reducing the balance that will be financed.
For example, if a buyer provides a $25,000 down payment and the final closing costs are $8,000, approximately $17,000 would be applied to the purchase principal. This example is for illustration only; actual amounts are determined for each property and must be itemized in the final documents.
What can closing costs include?
Depending on the property and transaction, closing costs may include the following items. Not every item necessarily applies to every transaction.
- The applicable title insurance policy premium.
- Services related to the title search and examination.
- Closing, settlement, or escrow fees.
- Tax certificates.
- County recording fees for the deed and other documents.
- Document preparation and processing.
- Courier, delivery, or notary expenses when applicable.
- Financing origination and processing fees.
- Evaluation and preparation of the financing terms.
- Initial loan servicing or payment administration setup.
- Prepaid taxes, insurance, or other applicable items.
Always request a written breakdown
Before signing, you should receive a clear explanation of how your money will be distributed. Review the amounts in advance and ask every necessary question before closing.
- The total down payment you will provide.
- Closing and origination costs.
- The amount applied to principal.
- The remaining financed balance.
- The interest rate, monthly payment, term, and other financing conditions.
Start with your numbers
To determine which properties may work for you, define how much money you have available for the down payment and a monthly payment that is comfortable for your budget.
Pedro can help you review Alamo Home Source inventory and explain available Owner Finance options based on your down payment, income, and preferred property.