It seems like the real estate market has been on fire for a long time. The seller's market that has persisted over the last few years 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.
- Jumbo (loan amounts over $647,200 in Maricopa County) - Generally the minimum down payment is 20%. There are some niche products that will allow 10%.
Reach out today to find out what your down payment options are!
