Buying your first home doesn’t take 20% for a down payment like most people think. The type of loan you are applying for will dictate how much of a down payment is required. For Example: FHA loans require 3.5% down payment at a minimum, Conventional loans starts at 3% down, USDA and VA loans require zero down payment. Let’s pretend you are buying a home for $100,000. If you do not have the full $100,000 to pay the seller in cash then you will need a home loan. Each of the loan types above have a minimum requirement. For Example: FHA loan requires the buyer to bring in $3500 and the investor will lend you based off the FHA requirement $96,500. On the other hand, if you are applying for a VA or a USDA loan the investor will lend you all $100,000 if you meet their qualifying requirements. It is important to partner with a lender who will explain all your options to you and maximize your purchasing power. NOTE: a down payment is different from “closing costs”. Closing costs are the fees for you to acquire property.