Average Down Payment for a Home Loan

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What is the average down payment necessary for a home loan in today’s market? Good credit, conforming.


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For the purchase of a primary residence, the typical down payment requirement would be 20% of the purchase price.  Generally speaking, the conforming loan balance should not exceed $417,000.   Rates and programs are similar for vacation and second homes, as long as they are not income generating or investment properties.  A lot of other factors may come into play.  That said, if the buyer has excellent credit, they may qualify for a lower down payment, as little as 5%, with PMI (private mortgage insurance). 

There are specialty programs for primary residences that require less money down.  FHA has a minimum down payment requirement of 3.5%, but carries and up front and monthly mortgage insurance.  VA loans are eligble for 100% financing.  USDA also has a 100% financing option.  Both these programs have an up front funding fee at closing, but no monthly mortgage insurance.

As always, for your specific needs, please contact a mortgage professional to review your options. 

Answered about 4 years ago

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