“I have money saved, but I’m not sure how much I’ll need for the down payment. How much will it be?”
This is a question that my team and I hear a lot. And the truth is, it depends on a number of factors like the purchase price of the house and the type of loan you’re interested in.
For example, conventional financing requires a minimum of 5% down. So if the purchase price of the house you’re interested in is $500,000, you’ll need at least $25,000 cash to close.
However, there are other types of loans that require a smaller down payment, or something none at all. FHA financing requires 3.5% down, while Home Path only requires 3%. And if you’re a veteran, VA financing literally requires 0% down.
There are some other things to keep in mind, however. The smaller your down payment is, the higher your monthly mortgage payment will be. If you’re able to put more cash down, your monthly payment will be smaller. On a conventional loan, a larger down payment will reduce your mortgage insurance significantly.
If you’re interested in learning more about types of loans and what you qualify for, contact my office today at 702.331.8185.