How Much Down Payment Do I Need for a Home Loan?

[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 it’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 you’d like to apply for or qualify for.[/vc_column_text][vc_column_text]

FHA Loans

The minimum down payment for an FHA loan is 3.5 percent of the home’s purchase price. That means the down payment for, say, a $400,000 home would be just $14,000 with this type of loan.

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Conventional Loans

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 home’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.

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VA Loans

VA loans, guaranteed by the U.S. Department of Veterans Affairs (VA), don’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.

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USDA Loans

USDA loans, backed by the U.S. Department of Agriculture, don’t require a down payment. The USDA loan is available in rural and outlying suburban areas and offers low rates and 100% financing.

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Most people don’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 can’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!

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By | 2018-04-23T10:11:28+00:00 September 23rd, 2016|Home mortgage loans|Comments Off on How Much Down Payment Do I Need for a Home Loan?

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