*disclaimer: Not all individuals will qualify for each loan type and/or scenario. Please contact me to see if you'd qualify for these loan products and/or discuss your options.
Questioning how much you should spend on a down payment is one of the most common questions when it comes to mortgages. There are many ways that this could be answered and many scenarios which could change your strategy. For any questions you have, or for advice on what might be the best option for you, please give me a call and we can discuss further about your specific situation.
One question that should be asked alongside of "how much should I pay for a down payment" is "do we want to, and, can we afford to avoid mortgage insurance?" If the answer is "Yes" to both of those questions, then your answer becomes pretty clear. In order to avoid mortgage insurance, a borrower needs to put down at least 20% of the purchase price at closing. It is going to be a larger sum of money, but it will allow you to go into your mortgage without the added expense of mortgage insurance.
If you don't want to put 20% down, or can't afford to do so at this time, then how much money is needed to put down on a house? Depending on the loan product that is decided upon, it could be as little as 0% down.
On a conventional loan, it is required that a borrower puts down 3% of the purchase price. An FHA loan is a bit higher at a 3.5% down payment.
These are the two most common loan products because most times, borrowers can qualify for, and benefit the most from at least one of these two options.
VA loans and USDA loans have other stipulations that go along with qualification. VA loans for instance, require a borrower to be a veteran, or married to a veteran. USDA loans require the borrowers to live in a rural area that qualifies as a USDA zone.
Both of these loan products don't require a specific down payment amount.
Utah Housing loans are another option that is available to borrowers for little-to-no down payment. Utah Housing has many regulations that borrowers need to have before they can qualify for a loan.
The good news is that there are options available to you. At the end of the day, it's up to you to decide how much you want to put down at the closing table.
Contact me today to discuss your options and which loans you could qualify for. We can also discuss how much money is needed for a down payment and your current financial status.
*disclaimer: Not all individuals will qualify for each loan type and/or scenario. Please contact me to see if you'd qualify for these loan products and/or discuss your options.
Brayden Ramsay NMLS #1997195
Momentum Loans NMLS #1606597
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