If you're considering buying a home, you might wonder how much is required as a down payment. Here is a quick run-down of the requirements of the down payment per loan type.
You'll often hear the down payment expressed as a percentage. For example, a 20% down payment on a $300,000 mortgage loan means you'll pay 60k down. 20% down can make homeownership feel out of reach, but very few lenders still require such an amount.
In fact, you can even get a conventional loan with 3% down!
If you're able to put 20% down, you'll get some key benefits.
Yes, it's possible to buy a home without a downpayment. However, it won't be with a conventional loan but rather a government-backed loan.
VA loans are home loans for current and former members of the armed forces and their surviving spouses. USDA loans are home loans for properties in qualifying rural and suburban areas.
Both of these options have a zero-down payment guarantee. However, you must meet the qualifications. Contact us for more information.
Conventional loan requirements vary by lender. Some lenders require 5% down, while others only need 3%. Often higher credit scores give you the opportunity for a lesser amount of down payment.
You'll need at least a 3.5% down payment for an FHA loan plus a credit score of 580 or higher. If your credit score is less than that, you'll need at least 10%.
VA loans don't require a down payment. However, some other requirements to determine your eligibility.
Like a VA loan, you don't need a down payment for a USDA loan. However, to qualify, the home must be located in an approved rural or suburban area, plus your household members must also meet specific income requirements.
It's possible to buy a property with as little as 3% down, and maybe with no money down if you qualify for a VA or a USDA mortgage. Buying a home is more obtainable than you think, and having little down payment doesn't need to hinder your homeownership plans. Contact us today to learn more about your options and to get started with qualifying for a low-rate mortgage today!
We've been helping customers afford the home of their dreams for many years and we love what we do.
Company NMLS: 229593
200 Westside Square, Suite 602
Huntsville, Al 35801
Huntsville, Alabama 35801
Phone: (256) 539-0555
Lawhorn & Associates Mortgage Company strives to ensure that its services are accessible to people with disabilities. Lawhorn & Associates Mortgage Company has invested a significant amount of resources to help ensure that its website is made easier to use and more accessible for people with disabilities, with the strong belief that every person has the right to live with dignity, equality, comfort and independence.
Lawhorn & Associates Mortgage Company makes available the UserWay Website Accessibility Widget that is powered by a dedicated accessibility server. The software allows lawhornmortgagecompany.com to improve its compliance with the Web Content Accessibility Guidelines (WCAG 2.1).
Lawhorn & Associates Mortgage Company accessibility menu can be enabled by clicking the accessibility menu icon that appears on the corner on the page. After triggering the accessibility menu, please wait a moment for the accessibility menu to load in its entirety.
Lawhorn & Associates Mortgage Company continues its efforts to constantly improve the accessibility of its site and services in the belief that it is our collective moral obligation to allow seamless, accessible and unhindered use also for those of us with disabilities.
Despite our efforts to make all pages and content on Lawhorn & Associates Mortgage Company website fully accessible, some content may not have yet been fully adapted to the strictest accessibility standards. This may be a result of not having found or identified the most appropriate technological solution.
If you are experiencing difficulty with any content on Lawhorn & Associates Mortgage Company website or require assistance with any part of our site, please contact us during normal business hours as detailed below and we will be happy to assist.
If you wish to report an accessibility issue, have any questions or need assistance, please contact us by sending an email to: firstname.lastname@example.org