Minimum Down Payment

Minimum Down Payment

Years ago at least 20% was a required down payment for a home purchase. Those days are long gone but I still get the question asked if 20% is required by the bank.  The answer is ‘No’ but putting that much down on a conventional loan does avoid you having to pay Private Mortgage Insurance also known as PMI.  PMI is for the protection of the lender, not you. It protects them in case you default on the mortgage. 

Today you can get a Conventional loan for as little as 3% down!

• You’ll need ‘good’ to ‘excellent’ credit
• You’ll have the ability to eliminate the PMI over time with value increases

FHA loans can be had with only 3.5% down

• They are more flexible with credit requirements
• You can carry more debt in relation to income vs a conventional loan. 

VA loans do not require any down payment from the veteran

• All 3 loans will allow the seller to pay toward closing costs. 

Don't hesitate to reach out with any home buying questions that come to mind!