Source: www.bankrate.com | May 9, 2022 | Zach Wichter, Mortgage reporter
What is a down payment?
A down payment is an upfront partial payment toward the purchase of a home. It reduces the amount you’ll need to borrow, and is typically expressed as a percentage of the sales price of the home. For example, if a mortgage lender requires a 3 percent down payment on a $250,000 home, the homebuyer must pay at least $7,500 at closing.
If you can’t afford the down payment required by the lender from your savings alone, you might still have options. Many borrowers source down payment funds from the proceeds of selling their current home, or from gifts or grants from family, friends or special programs for homebuyers.
Read the full article here: https://www.bankrate.com/mortgages/how-much-is-a-down-payment-on-a-house/
Article covers:
What is a down payment?
How much is a down payment on a house?
Minimum down payment requirements
Conventional loan: 3 percent to 25 percent
Jumbo loan: 10 percent
FHA loan: 3.5 percent
VA loan and USDA loan: Zero percent
How much should you put down on a house?
Benefits of making a larger down payment
How to calculate a down payment
How much is the average down payment?
How to find down payment assistance
Why mortgage lenders require a down payment