A question I get all the time is, “How Much of a Down Payment Do I Need?”
To answer how much of a down payment you will need, it depends on the loan type.
For a conventional mortgage, you need at least a 3% down. The three percent is kind of like a new down payment in the last six months that conventional loans allow. There is a higher mortgage insurance with those dealt. With a 5% down on conventional mortgage, the mortgage insurance does decrease.
An FHA loan which is a government loan requires a 3 and a half percent down payment and there is mortgage insurance associated with that.
USDA or a Rural Development Loan requires no down payment. It’s a 100% loan and the problem with that is though it is limited to geographic area, mainly more in the rural areas and there is an income limitation. A household income limitation of $74,400 dollars in the Knoxville, TN area.
A VA loan or a Veteran’s Loan requires no down payment and there is no monthly mortgage insurance.
For more details on all of these, give us a call 865-909-0211 and we can give you more details about all these loan types and the down payments required. In the meantime, I’m going to think about summer with this cold weather and go to try find some warmth. Thanks!
If you have any additional questions about the mortgage process, call Keystone Mortgage at 865-909-0211. Providing Tennesseans with the best mortgage experience, period. So what are you waiting for? Get that dream home and apply here now.