5 Different Types of Home Loans
There are several types of home loan programs available, each with its own down payment requirements. Here are some of the most common types of home loan programs and their associated down payment requirements:
Conventional loans: These are traditional mortgage loans offered by private lenders and are not backed by the government. Typically, a down payment of at least 3% to 20% of the purchase price is required. The exact down payment amount will depend on factors such as credit score, loan amount, and the lender's requirements.
FHA loans: These are mortgage loans insured by the Federal Housing Administration (FHA). The down payment requirement for an FHA loan is usually 3.5% of the purchase price.
VA loans: These are mortgage loans available to eligible veterans and active-duty service members. VA loans require no down payment.
USDA loans: These are mortgage loans offered by the United States Department of Agriculture (USDA) to eligible rural and suburban homebuyers. USDA loans require no down payment.
Jumbo loans: These are mortgage loans that exceed the conforming loan limits set by Fannie Mae and Freddie Mac. The down payment requirement for a jumbo loan will depend on the lender's requirements, but it is usually at least 10% to 20% of the purchase price.
It's important to note that these down payment requirements are just guidelines and can vary based on factors such as credit score, income, debt-to-income ratio, and other factors. It's always best to consult with a mortgage lender or financial advisor to determine which home loan program and down payment amount is right for you.