Here Are Your Down Payment Options On A Purchase Loan...

Good Morning!



I have borrowers ask me every day how much they need to put down to purchase a home. Here are your minimum down payment options on the loan products currently available in the market place.

Loan Programs...

VA loan: No down payment necessary. No monthly MI. This is the best loan going if you can qualify for it.

USDA: No down payment necessary. No monthly MI. Mainly for rural areas or smaller downs. Has geographic and income restrictions.

FHA: The minimum down payment is 3.5%. Great rates, low monthly MI.

Fannie Mae Flex 97: 3% down. Higher monthly MI. This one has a bit higher rate than FHA.


The bottom line:

1) If you have less than 5% to put down VA and USDA are best if you qualify for them. Otherwise FHA is a wonderful loan program - very friendly to the borrower.


2) If you have 5% or more to put down you can get a great rate and you will have multiple loan choices.



Have a good day, and thanks for reading!






Brett