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How Much Down Payment Do I Need?
A lot of buyers assume they need 20% down, but most loan programs require far less. Here is a quick explanation of the options and what each one means for your monthly payment and costs.
Video coming soon
The key takeaways are below in the meantime.
Written by Bri Bond-Erwin
Key Takeaways
- The minimum down payment depends on your loan type. Conventional loans can go as low as 3%, FHA loans require 3.5%, and VA loans require no down payment for eligible borrowers
- A larger down payment reduces your monthly payment and may eliminate the need for private mortgage insurance (PMI)
- PMI is typically required on conventional loans with less than 20% down. It adds a monthly cost but is not permanent
- A smaller down payment preserves more cash for closing costs, reserves, and other financial needs
- The right down payment depends on your full financial picture, not just the minimum requirement
- Your lender will walk you through the options that fit your situation during the pre-approval process
Transcript will be available when the video is recorded.
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