Curious about Mortgages
How much of a down payment do I need for a mortgage?
The down payment required for a mortgage can vary depending on the type of loan and the lender's requirements. Generally, conventional mortgages typically require a down payment of at least 5% to 20% of the purchase price of the home. However, some lenders may require a higher down payment, particularly if the borrower has a lower credit score or is purchasing a higherpriced home.
FHA loans, which are backed by the Federal Housing Administration, typically require a down payment of 3.5% of the purchase price. VA loans, which are available to eligible veterans and activeduty military members, generally do not require a down payment.
It's important to note that making a larger down payment can have benefits, such as a lower monthly payment, a lower interest rate, and potentially avoiding the need for private mortgage insurance (PMI). However, it's important to balance your down payment amount with other financial goals and priorities, such as building an emergency fund or saving for retirement.