Home Mortgage Down Payment Minimums

Home Mortgage Down Payment Minimums are often the first question that comes to mind when a first-time home buyer is contemplating buying a home versus renting. 

Depending on the loan program, these first-time home buyers may find it easier than they thought or even heard from another media source. There is growing evidence that buying is more affordable than renting right now and if a buyer can get over the down payment hurdle, buyers will see the advantages home ownership will afford them. 

Minimum Mortgage Down Payments Required

FHA Loan = 3.5 percent down payment

• This can also be a gift from a close relative.
• Seller can contribute up to 6% of the buyers closing costs.
• FHA/HUD

Conforming Loan = 5 percent

• This cannot be a gift or the funds would need to be in your account for two months or longer to not consider the down payment a gift.
• Seller can contribute up to 3 percent of the buyers closing costs

VA Loan = 0 percent down

• Eligibly veterans can put zero down.
• No mortgage insurance required.
• Seller can contribute up to 4 percent of the buyers closing costs.

Rural Housing Loan = 0 percent down

• No money down.
• Seller can contribute up to 6 percent of the buyers closing costs.
• USDA Rural Development

To get any real estate market moving, especially this one, the purchases will need to start with the first-time buyers. 

This then allows the move-up buyers to do the same because of an expanding family or a promotion allows them to obtain a bigger home. These move-up buyers then can offer the next group of home purchasers the ability to buy or build custom homes or right size their living space. 

During the purchase boom, it was much easier to obtain a mortgage to buy a home with little to nothing down or out of pocket. This is a great case study for showing that the real estate market generates traction from the bottom up.

Let’s get our real estate market moving! Together we can help get a positive message out to first-time buyers and help move our market. If you or someone you know is interested in learning more about their options in home buying or to see what home mortgage down payment minimum is require, please contact me.  I’m happy to sit down with anyone for free.  Like I always say, it’s okay to wait five months or even five years, but it’s not okay to not have a plan!

Dan Eveland

763-202-7600

www.WhatIsYourAddress.com

Facebook Fan Page

Waterstone Mortgage Corp.

NMLS # 279274

Home Mortgage Down Payment Minimums