The down payment required for a mortgage will depend on several factors, including the type of loan you are applying for and the lender’s specific requirements. Here are some general guidelines for down payments on common types of mortgage loans:
- Conventional loans: Most conventional loans require a down payment of at least 3% to 5% of the purchase price. However, if you have a credit score of less than 620, you may need to make a larger down payment.
- FHA loans: FHA loans, which are backed by the Federal Housing Administration, require a minimum down payment of 3.5% of the purchase price.
- VA loans: VA loans, which are available to eligible veterans and active-duty military personnel, do not require a down payment.
- USDA loans: USDA loans, which are designed to help low- to moderate-income borrowers in rural areas, do not require a down payment.
Keep in mind that making a larger down payment can have benefits, including lower monthly payments and potentially better interest rates. However, if you cannot afford a large down payment, there are still options available to you. Be sure to talk to your Valiant Mortgage loan officer to ask about all your options.