The minimum down payment required to purchase a home varies depending on the loan type being utilized.

For a conventional mortgage, the minimum down payment for a first time homebuyer (no home ownership in the last 3 years) is 3%. If not a first time buyer, the minimum down payment is 5%. To avoid private mortgage insurance, the buyer would want to put down at least 20%.

For an FHA mortgage, the minimum down payment for a borrower with a qualifying credit score over 580 is 3.5%. If the credit score falls between 500-579, the minimum down payment is 10%

For VA and USDA loans, the minimum down payment is 0%. Allowing veterans and those purchasing in rural areas to purchasing without requiring a down payment. There are still closing costs associated with these loans, but they would be the only costs for the borrowers.

As always, please feel free to reach out to me anytime at mortgagesbymarlow@gmail.com.

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