Down Payment – How Much Do You Need?

Dated: 01/20/2019

Views: 146

Gone are the days when anyone could buy a home with just a promise and signature. No documentation loans allowed virtually anyone to buy a house with no money down with just a simple credit check. After the mortgage meltdown, this all changed. Lenders tightened guidelines and down payments were back.  

But how much do you actually need? Must you always find 20% down? The answer might surprise you; there are many ways to buy a home with less than 20% down payment.  

 0% Down – There are still two loan programs which allow one to buy a home for no down payment; the VA loan and the USDA loan. The VA loan requires the borrower to be a qualified service person or veteran and the USDA loan is for certain areas under the Department of Agriculture.   5% Down – Conventional loans with loan limits can allow one to buy a home with as little as 5% down. These loans do have PMI (Private mortgage insurance) which can be eliminated when the loan amount falls below the 20% threshold.   3 ½ % Down – FHA offers first time home buyers a good home loan for only 3.5% down payment. Again these loans have loan limits and PMI but offer a faster entry into the housing market.  

Buying a home doesn’t always mean 20% loan. If you’re considering buying a new home, connect with one of our lenders about your options. 

Wondering how much you can afford? Click here to download our app and check out the Mortgage Calculator and see how much purchasing power you have!



Presented by Bluffton Real Estate Agent Carletha Frazier Singleton with Exp Realty 843-321-9317

Blog author image

Carletha Frazier Singleton

Carletha Frazier Singleton began in the Real estate industry in 2004, she is a licensed real estate broker in 2 states and holds a vast amount of knowledge and experience. She has managed apartment co....

Latest Blog Posts

Week 8 eXperience Blog: Mentoring Program within eXp Realty

It’s official!  I am a Real Estate Mentor at eXp. Yes! I am following another passion of mine and continue creating the life that I have always wanted. The company gives an opportunity to

Read More

3 Questions You Need To Ask Before Buying A Home

3 Questions You Need To Ask Before Buying A HomeIf you are debating purchasing a home right now, you are probably getting a lot of advice. Though your friends and family have your best interests at

Read More

Week 7 eXperience Blog: Building a strong group at eXp Realty and launching my Top Secret Group for Your Success: Real Estate is my Hustle

This week has been super exciting. I have two wonderful ladies that joined me at eXp Realty. Both super professionals and extraordinary Realtors. In my heart, I feel so responsible for making sure

Read More

Week 6: EXP EXPerience Journey – Building a REVENUE SHARE as another source of income

I know what everybody already thinks does this mean that I will recruit tons of agents into eXp Realty to increase your revenue share. Let me explain what is my goal. I want my company to have the

Read More