How much down payment do I need?

How much down payment do I need?

Some people, particularly first-time home buyers, feel intimidated at the thought of making a large down payment on a house. Sometimes they feel confusion about how much will be required.

The size of your down payment will depend on the price of the home you want to buy. It will also depend on your ability to pay, and on the type of mortgage you get.

As a general rule, lenders like to see a 20% down payment for a conventional mortgage. Certain mortgage options allow you to make a smaller down payment.

FHA loans require an even a smaller down payment, as little as 3 - 5%. If you quality for a VA loan, you don’t need a down payment at all for purchases up to $203,000. Many special loan programs for the first-time buyers also have reduced down payments.