I received a lot of additional questions to my January 26th post regarding the 5% down payment option, so I would like to go over down payment requirements for other property types and loan amounts.
The following is limited to conventional loans. Down payment requirements on FHA loans (which are government-insured loans) are much less strict, but the terms and the costs are quite different, so I’ll go over FHA vs . Conventional another day.
The following takes into account both lender and Mortgage Insurance (MI) company requirements. Both have their own rules, so make sure that you can qualify on both fronts. When you have 20% or more down, there is no need for MI, so their rules will not apply.
- Loan Amounts up to $417,000, single-family home or detached PUD: 5% down minimum (680+ FICO required)
- Loan Amounts up to $417,000, condo or attached PUD: 10% down minimum (720+ FICO required)
- Loan Amounts $417,001 to $625,500, single-family home or detached PUD: 10% down minimum (720+ FICO required).
- Loan Amounts $417,001 to $625,500, condo or attached PUD: 15% down minimum (720+ FICO required).
- Loan Amounts $625,500 to $850,000, single-family home: 30% down required (650+ FICO required if salaried; 700+ if self-employed)
- Loan Amounts $625,500 to $850,000, condo: 45% down required (650+ FICO required if salaried; 700+ if self-employed)
- Loan Amounts $850,000 to $1,500,000: 35% down required
These requirements are based on today’s guidelines and can change at any time. The higher your credit score and the more you have down, the more options you will have, both in lenders (who will lend to you), and in qualifying for the best available interest rate.
Let me know if you have any questions!
