What is a Mortgage Payment Made up of?Applying for a home loan can be intimidating; especially if it's your first time buying a home. It's not so scary once you break it down and know exactly what
How Much is the Down Payment?
How much is the Down Payment?
That is a great question we hear often. The common minsconception is that the minimum down payment is 20% when purchasing a home and that couldn't be further from the truth. There are several different loans that require a much less down payment than 20%; some as low as 0%!
A FHA loan is a goverment backed loan that offers a low down payment mortgage for all home buyers. The minimum down payment amount is 3.5% of the purchase price of the home. If you're pre-approved for a $250,000 house, your minimum down payment amount would be $8,750.
A conventional loan actually offers a minimum down payment of 3%. There are some stricter qualifications required to be approved for a 3% down Conventional Loan like lower DTI (debt-to-income ratio), higher credit score, etc. On a $250,000 house, your 3% down payment would come out to be $7,500.
Most home buyers with a credit score of 620 or above can qualify for a 5% down payment with a Conventional Loan. Your minimum down payment required for a 5% Conventional Loan would be $12,500.
A USDA loan is a 0% down payment loan. The USDA loan is only available in certain areas; usually rural areas outside of major metropolitans. If you're looking for a home in rural Texas, USDA loan just may be the way to go!
Keep in mind that down payment is not the only costs that go into buying a home. There are also closing costs, option fees, earnest money, inspection fees, and appraisal fees to name a few. There are also certain credit requirements, income requirements, DTI requirements, and job history requirements for each mortgage loan. There are also Down Payment Assistance Programs readily available to you to help cover a portion of your down payment and/or closing costs!
Give us a call to find out if you qualify for a mortgage loan!
David Thelen REALTOR®
The Thelen Group
Keller Williams Premier Realty
22762 Westheimer Parkway #430
Katy, TX 77450
THE LEADING KATY REAL ESTATE AGENT In the residential real estate market, Katy real estate agent, David Thelen, is renowned among colleagues and clients alike for his integrity, loyalty and professio....