Down-Payments according to your loan

A down-payment depends on the type of loan you acquire. You can always make a high down-payment, but a minimum will be given. The size of a down-payment makes a difference in the overall amount you will be paying on a month-to-month basis.

FHA loan

Depending on your FICO score a Federal Housing Administration loan will require a minimum down-payment of 3.5%

Conventional Loan

Well qualified borrowers can put as little as 3% down. Loans with less than 20% down require PMI. Learn More

VA and USDA Loan

For qualified home-buyers, the VA and USDA loans will give you zero down-payment loans. These loans let you borrow from a regular lender.

Pros and Cons of making a down-payment

At the end of the day making a down-payment will help, but you need to feel confident about out-of-pocket costs. Making a down-payment gives you more loan options from which to choose from. Another benefit is that you would carry a lower loan balance. However, making a down-payment is not securing you any perks. It could actually put you at risk of depleting your expenses.

In conclusion, it’s important to ensure your credit score is in good condition for a loan. A minimum credit score of 580 is generally required to qualify for a loan with a 3.5% down-payment. Exploring with a loan officer all the no and low down-payment options will help you identify every cost that needs to be covered.