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Low down payment

A friend of mine said the lowest down payment you can make on a house is 5%. Is he right? I always thought that you needed 20%. 
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August 19 2013 - US
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Answers (8)

Down pays run from zero to as much as 50% depending on what you are buying, how much you are paying, your credit and how you are trying to finance your purchase, VA as low as zero down, FHA as low as 3.5% down, conventional from as low as 5% down.
You need to consult with a local lender to find out what is being quoted in your area.
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August 20 2013
Good afternoon Ms. Bowen,

Currently, lowest down payments are:

Veterans of the Armed Forces: VA Loan with Zero required down payment

FHA (Federal Housing Administration) Loan: 3.5% minimum required down payment

Conventional Loan (FannieMae/FreddieMac): 5% minimum down payment depending on property type.  Private Mortgage Insurance will be required and your Lender will obtain this through a PMI company.

Trevor Curran
NMLS #40140
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August 20 2013
The down payment can vary depending on the loan and finances. Down payments can be as low as 3.5% with an FHA loan. With the usual convention loan it is about 20% down which is what I'm assuming you are thinking about. Also, there are loans like VA loans (for veterans) that don't require any down payment.

Well I hope this helps! If you have any further questions or if you need a loan, feel free to contact me with the information on my profile page. Also, if you found this comment helpful, please leave me a review on my page!

Good Luck!
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August 20 2013
There are many options you can look at it.  USDA has 100% financing and so do some credit unions.  Contact a local lender who can help find the best option for you.  Best of luck.
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August 20 2013

Usually there are numerous special loan programs being offered by different lenders that allow small down payments or other featured benefits. Department of Veterans Affairs do not require any down payment until the property is relatively expensive. The other financing loan, FHA Administered by HUD, requires only 3% of down payment. 

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August 20 2013
Actually, Fannie Mae has a My Community Mortgage program that allows a 3% down payment and reduced mortgage insurance coverage.

VA and USDA offer no down payment.  VA has an upfront funding fee and no mortgage insurance.  USDA has an upfront guarantee fee and minimal mortgage insurance.

Please feel free to contact me directly with any other questions.

Best wishes!
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August 19 2013
Profile picture for wetdawgs
You can use an FHA loan for your primary residence with 3.5% down payment.
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August 19 2013

It is possible, but a buyer with less than 20% down would also need to get mortgage insurance. Read this recent article in the Washington Post:
The lowdown on low down payments

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August 19 2013
 
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