The amount you need for a down payment on a home can vary depending on the type of loan and the lender you are working with.
Conventional loans typically require a down payment of at least 5-20% of the purchase price of the home. For example, if you are buying a home for $300,000, a 5% down payment would be $15,000, while a 20% down payment would be $60,000.
FHA loans, which are government-backed loans that are popular among first-time home buyers, have a minimum down payment requirement of 3.5%. For example, if you are buying a home for $300,000, the minimum down payment would be $10,500.
VA loans, which are available to veterans and active-duty military personnel, have no minimum down payment requirement, and some lenders may offer 100% financing.
It's important to note that while these are the minimum down payment requirements, many lenders may require a larger down payment, especially if you have a lower credit score or a higher debt-to-income ratio. Additionally, some lenders may also require you to pay private mortgage insurance (PMI) if your down payment is less than 20% of the purchase price.
Keep in mind that the down payment isn't the only cost you'll have to pay when buying a house, you'll also need to pay closing costs, which can include things like appraisal fees, title search fees, and lender fees.
It's always a good idea to have a clear understanding of the down payment requirements and the costs associated with buying a home before you begin the home buying process.
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