Latest Down Payment Requirements
Want to know the latest down payment requirements for conventional loans, FHA loans, VA loans, and down payment assistance loans?
Here are the details.
Conventional loans require 5% of the purchase price as a down payment for most transactions. Depending on the circumstances, it is sometimes possible to get a conventional loan with just 3% down, although the interest rates are higher than if you put 5% down.
FHA loans require 3.5% of the purchase price as a down payment.
VA loans don’t require any down payment, unless the loan amount is higher than the county loan limit. In the Denver Metro counties, the loan limit is $684,250. A VA loan higher than that amount requires 25% of the amount that is over the county limit as a down payment. As an example, if the purchase price of a house is $750,000, the down payment requirement for a VA loan would be $16,438. It is calculated like this: subtract the county loan limit from the purchase price (750,000 – 684,250 = 65,750). Then multiple the difference by 25%. 65,750 x 25% = $16,438.
Down payment assistance loans provide the borrower with a second mortgage that covers the down payment (and a little bit of the closing costs), so you don’t need any money down if you get a down payment assistance loan.
For all of these types of loans, it is permissible to get a gift from a relative to cover some or all of the down payment and the closing costs.
We sell all of these types of loans (conventional, FHA, VA, and down payment assistance). Contact us today to see how easy it is to get approved for a mortgage.