Jake's Lending Tip of the Week

It seems like the real estate market has been on fire for a long time. The seller's market has caused prices to increase, and in turn the down payment needed to increase. It is important to remember that 20% is not required nor is it the norm! There are down payment options for as low as 3% of the purchase price. Below are the minimum down payment requirements for the most common loan types:

• FHA?- The minimum down payment is 3.5%. There are down payment assistance programs available to cover this requirement.
• Conventional?- The minimum down payment for conventional financing ranges from 3-5%. If you are a first-time home buyer, you can go as low as 3% with underwriting approval. There are down payment assistance programs available to cover this requirement.
• VA?- The minimum down payment is 0%. The borrower must be a veteran to qualify.
• USDA?- The minimum down payment is 0%. USDA loans are limited to predetermined rural areas.

If you have any questions about these programs or any others please do not hesitate to reach out!!