I have borrowers ask me every day how much they need to put down to purchase a home. Here are your minimum down payment options on the loan products currently available in the market place.
Loan Programs…
VA loan: No down payment necessary. No monthly MI. This is the best loan going if you can qualify for it.
USDA: No down payment necessary. No monthly MI. Mainly for rural areas or smaller downs. Has geographic and income restrictions.
FHA: The minimum down payment is 3.5%. Great rates, low monthly MI.
Fannie Mae Flex 97: 3% down. Higher monthly MI. This one has a bit higher rate than FHA.
The bottom line:
1) If you have less than 5% to put down VA and USDA are best if you qualify for them. Otherwise FHA is a wonderful loan program – very friendly to the borrower.
2) If you have 5% or more to put down you can get a great rate and you will have multiple loan choices.
Have a good day, and thanks for reading!
Brett