Current Down Payment for Home Loans

:

𝗗𝗼𝘄𝗻 𝗣𝗮𝘆𝗺𝗲𝗻𝘁 𝗥𝗲𝗾𝘂𝗶𝗿𝗲𝗺𝗲𝗻𝘁𝘀 𝗳𝗼𝗿 𝗟𝗼𝗮𝗻 𝗣𝗿𝗼𝗴𝗿𝗮𝗺𝘀

📆 As of January 2024, here's a summary of the current requirements:

🌟Conventional Loans

First-Time Home Buyer: 3% down payment.

Repeat Buyer: 5% down payment.

Second Home: 10% down payment.

Investor: 15% down payment on 1 unit, 2-4 units 25% down (if living in one unit, 5% down)

Note: PMI required if down payment is less than 20%.

🌟FHA Loans

Credit Score 580+: Minimum down payment is 3.5%.

Credit Score 500-579: Minimum down payment is 10%.

🌟 VA Loans (Veterans & Active Military):

No Required Down Payment: VA Loans may require a Funding Fee.

First-time VA Loan Users:

No Down Payment: 2.15% funding fee.

5% or More Down Payment: Reduced to 1.5% funding fee.

10% or More Down Payment: Reduced to 1.25% funding fee.

Subsequent VA Loan Uses:

No Down Payment: 3.3% funding fee.

5% or More Down Payment: Reduced to 1.5% funding fee.

10% or More Down Payment: Reduced to 1.25% funding fee.

Note: The VA funding fee can be waived for disabled veterans.

🌟USDA Loans

Target Audience: Low- to moderate-income buyers in rural areas.

Down Payment: Usually not required.

🌟Jumbo Loans

Properties: More costly properties exceeding conventional limits.

Down Payment: Varies based on lender and borrower’s financial situation.

🌟 Additional Notes:

It’s also important to note that there are various down payment assistance programs available, which can help buyers, especially first-timers, meet these requirements. Additionally, factors like credit score and debt-to-income ratio play a significant role in loan eligibility and the terms offered.

🔍 Requirements can change due to economic and regulatory shifts.

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