Q & A: How much do I need for a Down Payment?

Each week our mortgage professionals answer questions they hear on a regular basis. This week Larry Kowalczyk is answering the Question of the week:

Q: How much do I need for a Down Payment?

A: The minimum down payment on and FHA loan is 3.5% of your purchase price and most conventional mortgage programs require at least a 5% down payment but in most cases you will be required to pay mortgage insurance anytime you have a less than 20% down.  There are few programs today that offer down payments as low as zero and a few others that  offer down payments assistance but almost all of them are income and/or location specific and mainly targeted to first time home buyers. You are considered a first time home buyer if you have not owed or co-owned a home in the last three years.  

For more information on this topic or any questions you may have on home financing, contact your mortgage professional. Don’t have a mortgage professional? Contact one of our many experienced Loan Officers at Bell Mortgage, a Division of State Bank & Trust.

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