Understanding Minimum Down Payment Requirements

If you want to put an offer on a home, you will need to show that you can qualify for a mortgage. To qualify for a mortgage, you have to be able to make a down payment. This amount ranges from nothing for a USDA loan to 20 percent for a traditional mortgage.

How Much Downpayment For a Mortgage?

Government Loans Tend to Have Lower Down Payment Requirements

There may be no need to put money down if you are looking to take out a USDA or VA loan. VA loans are available to those who have been in the military while USDA loans are available to anyone who is willing to live in an area designated as rural. For an FHA loan, you may need to put 3.5 to 10 percent down depending on your credit score and individual lender requirements. (Learn how mortgage rates impact the housing market.)

Traditional Loans Require 20 Percent Down

Traditional mortgages tend to come with lower interest rates, and there is usually no need to pay for mortgage insurance. Therefore, the requirements to get such a loan are typically more stringent. You will likely need to put 20 percent of the purchase price down, and you may also need to meet minimum savings requirements. However, these stipulations may be waived or modified depending on your credit score, income or other variables.

Professionals May Help You Learn More

The best Las Vegas mortgage brokers may explain in greater detail the rules surrounding down payments for a home. In addition to better understanding how much you need to put down, a professional may explain where the money can come from and how to document its source.