How much you decide to put down should be carefully evaluated on a basis of how much you personally can afford.
Although you may qualify for a higher mortgage payment, you may, realistically, be able to afford less.
If that’s the case, we’ll work with you to lower the loan amount, whether that’s by increasing the down payment or finding a less expensive property. Together we will figure out what’s best for you.
The “Down Payment Requirements” touches the minimum down payment needed for conventional loans (Fannie Mae & Freddie Mac), as well as some of the available alternatives with non-conventional (FHA & Portfolio loans) programs.
For example, you can purchase a single family home or condominium with as little as 3.0% down payment. But there is a price for lower down payment: mortgage insurance (often called PMI, aka private mortgage insurance).
Private Mortgage Insurance (PMI) is required when the loan amount is more than 80% of the purchase price. The lower the down payment the higher the mortgage insurance premium charged
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