Down Payment Options

Your down payment will be based on the cost of the home and most likely one of the following popular loan programs... 1. Conventional financing – For conventional financing, you will probably need a minimum of 5% up to a maximum of 20% down. 2. FHA financing – You will need a minimum of 3.5% down. 3. USDA financing – You may not need a down payment. 4. VA financing – You also may not need a down payment. Here are a few more things to know if you go with conventional financing. If you put less than 20% down, you may be responsible for paying private mortgage insurance. Also, the lower your down payment on a home, usually the higher your interest rate and monthly payment. Mortgage lenders tend to offer better terms to those with a high credit score, a higher down payment, and a stable employment history.