A common question home buyers often ask is, “Which type of mortgage loan is the best choice for me?” One of the most important factors in solving that question is determining how much down payment you can afford.
What Mortgage Can I Get With This Down Payment?
If you know your general price range, or the home’s actual value, enter that amount into our Down Payment Calculator below to see the type of loans you are eligible for based on the percent of the home’s value you can afford to pay.
Enter your home purchase price, and use the slider to select down payment percentage.
For 0% down payment, you may qualify for the following mortgage loans:
The USDA loan is the best-kept secret in the mortgage market. It requires zero down, plus credit guidelines are loose. Eligibility is location-based. Many rural and suburban neighborhoods across the U.S. are USDA-eligible. This loan is perfectly
suited for first-time and repeat buyers, and you don’t have to have a high income to qualify.
VA home loan
The VA home loan is available to home buyers with eligible military experience — as little as 90 days of service in some cases. This mortgage option has no down payment requirement. Plus, no mortgage insurance is required, potentially saving
buyers hundreds per month.
For 3% down payment, you may qualify for the following mortgage loans:
This loan allows entire households to contribute to the mortgage payment. The primary buyer can use income from non-borrowing household members to qualify. Income from roommates, boarders, and mother-in-law units is allowed. This loan requires a small 3% down payment, all of which can come from a gift from a family member or other eligible source.
The Conventional 97 gets its name from its small 3% down payment requirement. This program is best for home buyers who would otherwise qualify for a standard conventional loan, but don’t want to make a large down payment. Fannie Mae and Freddie Mac sponsor the program, which makes it widely available nationwide.
For 3.5% down payment, you may qualify for the following mortgage loans:
The FHA mortgage is the go-to program for more than 20% of home buyers. It requires a small down payment and is well-suited for borrowers with imperfect credit histories or lower income. This is a government-sponsored program designed to get more people into their own homes. Therefore, guidelines are flexible, and buyers often qualify when they thought they could never own a home.
For 5% down payment, you may qualify for the following mortgage loans:
Standard conventional loans come with a 5% down feature that not a lot of buyers know about. Many assume loans sponsored by Fannie Mae and Freddie Mac come with a 20% down requirement, but that’s not the case. Ask your lender about the 5% program, and enjoy the benefits of a conventional loan without the steep down payment requirement.
For 10% down payment, you may qualify for the following mortgage loans:
An 80-10-10 loan, otherwise known as a “piggyback” loan, is a mortgage option in which a home buyer receives a first and second mortgage simultaneously: one for 80% of the purchase price, and one for 10%. One loan “piggybacks” on top of the other. No mortgage insurance is required because the lender considers the 10% second mortgage part of the buyer’s down payment..
You can put just 10% down on a conventional loan, despite the popular belief that these loans require 20%. This option requires private mortgage insurance (PMI), which is typically very affordable. In many cases, opting for PMI is a better strategy than trying to come up with 20% down.
For 20% down payment, you may qualify for the following mortgage loans:
Conventional loans come with very low rates, plus no mortgage insurance is required when you put 20% down. Conventional loans are sponsored by Fannie Mae and Freddie Mac and available at your local lender. Conventional loans remain the mortgage of choice for buyers with good credit and a healthy down payment. A conventional 20% down loan can also be used to buy a second home or investment property.
For 25% down payment, you may qualify for the following mortgage loans:
Multi-unit & investment properties
You can buy a duplex, triplex, or four-plex by making a down payment of 25% or more. Purchasing a multi-unit home is a great way to get started as a landlord, whether you plan to live in one of the units or rent out the entire building. Homes with up to four units are eligible for conventional lending.