Call Us Down Payment Options When it comes to saving for a down payment on a home, there a few options that can help you become a homeowner sooner rather than later. Home » Resources » Mortgage 101 » Down Payment Options Down Payment Options The down payment is the part of the purchase price the buyer pays in cash and does not finance with a mortgage. Down payments are a percentage of the home’s selling price. For example, a 20% down payment on a $100,000 home is $20,000. Placing downpayments helps protect buyers in a fluctuating housing market, creates equity, improves your credit score, and often lowers your interest rate. A downpayment also shows lenders that you are serious about the purchase. As an added bonus, whatever you put down is money you won’t be paying interest on. While it is not also required to put in a downpayment, we strongly recommend you consider your options. Standard Requirements The type of mortgage determines the minimum down payment needed, usually ranging from 0% to 20%. Your mortgage loan officer will let you know what downpayment percentage is required of you, and how much you should put down in order to save the most money in the long run. Options for Veterans Veterans Administration (VA) loans are designed to help service people and veterans obtain financing at very reasonable rates and offer financing up to 100% of the home’s value. The Federal Housing Administration (FHA) was created to help middle- to lower-income buyers secure home loans. The FHA doesn’t actually lend the money; instead, it insures the loan. The FHA requires down payments as low as 3.5%. There are guidelines and the buyer’s credit is important to meeting these requirements. Although you may not have to put a full 20% down to buy a home, it is wise to put down as much as possible. Find The Loan That Is Right For You We'll be in touch with accurate and personalized loan programs and rates. Type of Loan* Select Purchase Refinance Cash-Out Refinance Home Description* Select Single Family Two Family Condo Townhouse Co-Op Occupancy* Select Primary Residence Second Home Investment Property Credit Profile* Select 740+ (Excellent) 720-739 (Very Good) 700-719 (Above Average) 680-699 (Average) 660-679 (Below Average) 640-659 (Fair) Below 640 (Poor) Share this: Click to share on Facebook (Opens in new window) Click to share on Twitter (Opens in new window) Click to share on LinkedIn (Opens in new window) Click to print (Opens in new window) More Homebridge Financial Services, Inc. 194 Wood Avenue South, Ninth Floor Iselin, NJ 08830 NMLS ID #6521 ©2021 Homebridge Financial Services, Inc. Resources Mortgage Calculator Mortgage Checklist Mortgage Glossary Renting vs Owning Credit Basics Appraisal Basics Down Payment Options Your Mortgage Payment Disaster Relief Center Contact Builder Division Careers Privacy Policy Privacy Choices NMLS Consumer Access Licensing Disclosure Home Mortgage Disclosure Act Notice Homebridge is not acting on behalf of or at the direction of HUD/FHA Or the Federal Government Give us a call Toll Free: 888-266-4930 Homebridge Wholesale Homebridge Builders REMN Wholesale Connect With Us Twitter LinkedIn Facebook YouTube