Down Payment – How Much Do You Need?

Dated: 01/20/2019

Views: 83

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

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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....

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Down Payment – How Much Do You Need?

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.

Read More