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That question depends on what you can afford to put down and if you are wanting to decrease your mortgage payments. By putting at least 20% down, you can eliminate the mortgage insurance. FHA as mentioned below requires at least 3.5% down. A VA loan can be 0% down but look for a local lender that can help steer you in the right direction in regards to your available funds and needs.
Your down payment should be large enough to bring your monthly mortgage payment down to not more than 25% of your family take-home pay.
Melodie, the amount that you should have for a down payment, depends on the type of Loan Program that you are using. This will be determined by the Loan Officer that you use. There are several types of Loan Programs that you may or may not qualify for. Visit a Lending institution in your area, or contact A Realtor who will be happy to assist you. Good Luck!
Hello Melodie! As you can see by the answers below the amount of down payment required will be determined by the Loan Program you choose to use.
The FHA Loan will require 3.5% as a down payment.
A Conventional Loan will require 5% as a down payment.
A USDA Guarnateed Rural Housing Loan will require $0.00 as a down payment.
Which loan program you use will be determined by where you are buying. If the home is in a USDA Eligible area than the USDA Loan will be your best bet because it does not have the heavy PMI (Private Mortgage Insurance) that is required on a FHA or Conventional Loan.
However, if you are not in a USDA Approved area, it is possible to use a down payment assistance grant from the State of Ohio to take the 3.5% down payment requirement on a FHA Loan down to 1%. The State will provide you with a grant for the other 2% down.
Feel free to do your own research online and make sure you are talking with someone that is a Licensed Loan Officer both by the State and the National Mortgage Licensing System.
Best of luck to you in your search for a home!
Yes, there is a minimum. FHA requires 3.5% down payment. You should always figure about the same or less closing costs. An earnest money deposit when writing the contract should be at least 1%. The earnest money deposit to show good faith is applied to the down payment or closing costs at settlement.
Actually, the best down payment is 100% down. No monthly mortgage payments that way.
The minimum down payment required on this amount is 3.5% of the purchase price which is $2,800. However you can always pay more so that your monthly payments are less.
Ideally, you'll want to have at least 20% set aside for a downpayment. While the minimum is as low as 3.5% for a FHA financed loan, it's best to have much more in place before buying a house. The bigger downpayment is a demonstration to yourself that you have the financial discipline to own a house and it really helps keep your monthly payments manageable.