Good Morning!
One of the most common questions I get from borrowers is “How much will I have to put down to get a mortgage?”
Here are your minimum down payment options on the loan products currently available in the marketplace.
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. Low monthly MI. Mainly for rural areas or outlying suburbs. Has geographic and income restrictions.
FHA: The minimum down payment is 3.5%. Great rates, has upfront and monthly mortgage insurance.
Conventional: You will need 5% down for Conventional loans. (3% for first time home buyers)
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 Conventional loan, and you will have multiple loan choices.
That’s it for today!
Have a good day! …and thanks for reading.
Brett