Posted on: 22nd Nov, 2011 10:10 pm
My husband and I are married for quite a few years now and want to buy a home. We know that down payment is the most important factor while getting a mortgage. Does anyone know how much is required by the bank?
Hi Galley,
If you're planning to take out a conventional loan, then you will require a down payment of 20%. However, conventional loans are available at a down payment of 10% but then you will have to go for a private mortgage insurance(PMI) in that case. If you want to avoid PMI, it's better to pay 20% down payment.
If you want to go for a FHA loan, then you will have to provide a down payment of 3.5% - 5%. If anyone of you qualify for VA benefits, then you can get a VA loan at a 0% down payment.
Take care.
If you're planning to take out a conventional loan, then you will require a down payment of 20%. However, conventional loans are available at a down payment of 10% but then you will have to go for a private mortgage insurance(PMI) in that case. If you want to avoid PMI, it's better to pay 20% down payment.
If you want to go for a FHA loan, then you will have to provide a down payment of 3.5% - 5%. If anyone of you qualify for VA benefits, then you can get a VA loan at a 0% down payment.
Take care.
Conventional loans require a down payment of 5% of your own money. Also can do 3% down with My Community Mortgage.
VA loans do not require any down payment, however, you must be a Veteran.
FHA loans requrie a 3.5% down payment--that can be a gift from a relative and/or your own funds.
USDA loans do not require any down payment, but, there are income limits and the proeprty must be eligible.
Down payment is not the most important factor. It is one of several factors, all equally important.
VA loans do not require any down payment, however, you must be a Veteran.
FHA loans requrie a 3.5% down payment--that can be a gift from a relative and/or your own funds.
USDA loans do not require any down payment, but, there are income limits and the proeprty must be eligible.
Down payment is not the most important factor. It is one of several factors, all equally important.
