The ideal situation for homebuyers is to make as large of a down payment as possible, when buying a home. The benchmark is 20 percent down, but this is unattainable for mast people, especially for first time buyers.

Bob Tedeschi, columnist for The New York Times, offers advice to people who cannot afford a large down payment, in his July 20, 2006 article, “Getting Started: Determining Whether to Refinance.”

“Twenty percent remains the magic number, financial advisors say, because putting down at least that much allows consumers to avoid private mortgage insurance, or P.M.I., which boosts monthly payments without adding a cent to the home’s equity.”

But who has the money to put down 20 percent of the loan?

Thirty years ago, you had to put at least 10 percent down just to be considered for a loan with the worst rates. Now, mortgage brokers are becoming more aware of borrowers’ needs, and are allowing smaller down payments to be made.

You may even qualify for one of the many government-financed housing assistance programs that do not require any down payment at all.

But chances are that you will still try to make as large a down payment as possible to avoid extra fees and have lower monthly payments.

“Before arriving at the ideal down-payment figure, though, homebuyers must first figure out how high a monthly mortgage payment they can afford, according to Lynn Law, director of education and counseling for the Long Island Housing Partnership, a nonprofit housing group based in Hauppauge, N.Y.”

“Ms. Law says banks will usually allow buyers to allot 33 percent to 38 percent of their gross monthly income to a mortgage payment.” But their monthly income cannot exceed 43 percent of the payment.

“With such vexing implications for those who cannot handle a 20 percent down payment, it is no surprise that homebuyers continue to turn to parents, friends and other family members for help. Indeed, with housing prices soaring in recent years – and with more wealthy and aging Baby Boomers able to help their adult children buy homes — industry executives say more homebuyers are getting gifts to help with their down payments.”

Again, this does not apply for everyone. But for those who are in the beneficial position to receive a “gift,” should let the givers know about certain tax implications.

“Internal Revenue Service guidelines state that any individual may give a gift of up to $12,000 without reporting the gift for tax purposes.”

Parents of a couple can make a combined donation up to $48,000.

So, as mentioned, most people need assistance. “In New York, for instance, the State of New York Mortgage Agency (www.nyhomes.org), a state-financed housing assistance group, allows first-timers to secure mortgages with 3 percent down, with rates in the 5 percent range. The agency also offers financial help with closing costs.”

Making a 20 percent down payment will avoid fees and will contribute to lower monthly payments. But for the majority of home buyers, there are ways to get around the 20 percent mark, without paying rates that are too high.