To avoid private mortgage insurance you will need to put down at least 20%. Some lenders offer a mortgage without PMI with a lower down payment but you will pay a higher interest rate. When you make the decision to buy a house it is highly recommended that you research the down payment requirements for the loan you want so you will know exactly how much you will need. If a friend or family member or employer has offered to provide a down payment gift, initiate a conversation early so you will know how much they plan on contributing so if there’s any shortfalls you will be able to cover it.
*Consider options backed by the federal government if you don’t have much money saved for a down payment. FHA loans-Insured by the Federal Housing Administration require 3.5% down.
VA loans and USDA loans require no down payment.
*Conventional loans backed by Fannie Mae and Freddie Mac require just 3% down.
Look into a local or state first time home buyer assistance program to help with closing costs or your down payment also even if you owned a house in the past you still can qualify for a first time home buyer program.
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