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. (Credit scores down to 580)
Conventional: There Are 3% Down And 5% Down Loan Options On Conventional. No Up Front MI.
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
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