Down Payment Requirements

Mortgage down payment requirements have changed tremendously over the last 5 years. Several years ago there were literally hundreds of different loan programs that did not require any down payment, but that has changed and now there are really only two programs left that don't require a down payment.

In this article we're going to review the current down payment requirements for the most common loan programs available.

		VA Loans - a VA loan is only available to eligible veterans who have served in the military. This is a very good loan if you are eligible for it. A VA loan allows for no down payment, and allows for the seller to be able to pay your closing costs. A VA loan is one of the two loans left where you can buy a home with virtually no money out of pocket. You must have at least a 620 credit score to be eligible for a VA loan.
		USDA Loans - a USDA loan is only available on properties located in what is considered a rural area. These loans also have income limits. This means if you make more than the allowed income for your county you will not be eligible. Like a VA loan, this loan does not require a down payment, and also allows the seller to contribute to your closing costs. You must have at least a 620 credit score to be eligible for a USDA loan. You can check if the property is located in eligible area here Eligible Areas. You can check the income limits for your county here Income Limits.

		FHA Loans - if you are not eligible for a VA loan or a USDA loan then an FHA loan will be the lowest down payment option for you. FHA loans require a 3.5% down payment. There is one special FHA program that allows for a $100 down payment, but this program is only available if you are purchasing an FHA owned foreclosure. FHA loans also allow the seller to contribute to or pay all of your closing costs up to a certain percentage of the sale price. You must have at least a 640 credit score to be eligible for an FHA loan.
		Conventional Loans - conventional loans are a little more tricky when it comes to down payment requirements. The minimum down payment for conventional loan is 5% down. However, in order to be eligible for this you must have at least a 680 credit score. If your credit score is below 680 you will be required to put 20% down for a conventional loan. You must have at least a 620 credit score to be eligible for a conventional loan.


Loan Amount:	$ ? How much do you want to borrow? Example: 150000
Property Value:	$ ? Example: 175000. This is the purchase price of your property or your best estimate at the appraised value of the property
? Specify the state where the property is located.

? Selecting "Refinance, take cash out" may increase your rate. If you want some extra cash to pay the closing costs on your new loan, this would NOT be considered receiving extra cash.
? We can automatically sign you up for Rate Watch, a program which notifies you via email when rates drop below todays current pricing.
Your Name:	Phone(optional):

Your E-mail: