[vc_row][vc_column][vc_column_text]Think you need a 20 percent down payment to buy a home? – Think again![/vc_column_text][vc_column_text]Many people believe, especially first-time buyers, that they need a 20 percent down payment to buy a home. But the truth is itâ€™s possible to purchase a new house with as little as 3.5 percent down, or even nothing.
So, what are the minimum down payments? It depends on the type of loan that youâ€™d like to apply for or qualify for.[/vc_column_text][vc_column_text]
The minimum down payment for an FHA loan is 3.5 percent of the homeâ€™s purchase price. That means the down payment for, say, a $400,000 home would be just $14,000 with this type of loan.
The minimum down payment required for a conventional loan that conforms to Fannie Mae or Freddie Mac guidelines with a loan amount up to $417,000 is just 5 percent of the homeâ€™s purchase price. If the amount is larger than $417,000, the down payment can be as low as 10 percent. If it is a jumbo loan, the down payment can be a little bit over 10 percent.
VA loans, guaranteed by the U.S. Department of Veterans Affairs (VA), donâ€™t require a down payment. The VA loan is open to most active-duty military personnel and U.S. military veterans and their families. Buyers can purchase a home with very little cash upfront.
USDA loans, backed by the U.S. Department of Agriculture, donâ€™t require a down payment. The USDA loan is available in rural and outlying suburban areas and offers low rates and 100% financing.
Most people donâ€™t need a big down payment to buy a house and even more people have the income and means to buy their own homes, but they think that they canâ€™t do it. You can find personalized and professional guidance by contacting a lender and finding the right option that could help you to save thousands and put you closer to your dream home!