| The type of loan you get and your overall credit scores will determine the
minimum down payment you will be required to have. Conventional loans typically
range from 3% to 20% down, though there are now programs available with 100%
financing which involve qualifying for both a first and second mortgage. If you
are able to put 20% down you avoid having to pay mortgage insurance, which can
be quite a savings on your monthly payment. FHA loans usually start at 3%
down, though they also have 100% financing programs available. Often called
first time homebuyer loans though they are available to anyone, the FHA loan is
more forgiving of lower credit scores. The down side is that they always have
monthly mortgage insurance fees as well as an upfront mortgage insurance
assessment.
VA loans are literally be $1 down. The Veteran's administration insures these
loans with a one time up front fee, usually 2% for the first time VA buyer and
3% for repeat VA buyers.
Plus there are numerous types of "creative" financing that provide seller assistance in lieu of the buyer's down payment. These are usually in the form of a high interest, short-term loan that the buyer must repay after a 5 year period. To someone who has no other access to a down payment, but has plenty of monthly income, this can be a very viable alternative. See no money down loans.
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