Usually homebuyers will need some money for the down payment and associated closing costs.  These costs can quickly eat into whatever monies a Buyer has in reserve.  However, with today's broad range of loan options, having a lot of money saved for a down payment is not always necessary, that is if you can prove that you are a good financial risk to a lender. If your credit isn't as high as it should be, however, you have managed to save 10-20% for a down payment, you will still be considered a financial risk to most lenders. High-ratio mortgages can be a good option for those who haven’t managed to save a large chunk of money, but these options have additional costs associated with them, so it important to understand clearly how much extra you will be paying at closing.