The amount of down payment required to buy a house can vary depending on the type of loan you are using, your credit score, and the price of the home.
Conventional Loans
Conventional loans, which are not backed by the government, typically require a minimum down payment of 5% to 20% of the purchase price.
FHA Loans
FHA loans, which are backed by the Federal Housing Administration, have a minimum down payment requirement of 3.5%. However, borrowers are also required to pay mortgage insurance, which can add to the overall cost of the loan.
VA Loans
VA loans, which are backed by the Department of Veterans Affairs, do not require a down payment for eligible veterans and active-duty service members.
USDA Loans
USDA loans, which are backed by the U.S. Department of Agriculture, also do not require a down payment for eligible borrowers in rural areas.
Some lenders and state housing finance agencies also offer programs that can help buyers with down payments and closing costs, such as first-time homebuyer programs or assistance for low-income buyers.
It’s important to note that having a higher down payment can also help you to secure better interest rates and terms on your loan. So, having a higher down payment can be a good idea if you have the financial resources. It’s always good to consult with a lender or a financial advisor to understand the best option based on your individual situation.