One of the first things any home buyer should ask him or herself is how much of a down payment is he or she is going to need to buy a house, condo or co-op. Fortunately, figuring that out is easy.
There are two types of mortgage loans that are available in these tough economic times, the FHA Loan and the Conventional Loan.
FHA mortgage loans are loans that are insured by the Federal Government and allows anyone who meets certain qualifications to put a minimum of 3.5% down on a house or a condo (Co-ops cannot be purchased with FHA loans).
Here are some examples of how much of a down payment you’ll need if you want to purchase a property using an FHA Loan:
| Property Price | Down Payment | ||
| Amount | |||
| $ 100,000 | $ 3,500 | ||
| $ 150,000 | $ 5,250 | ||
| $ 200,000 | $ 7,000 | ||
| $ 250,000 | $ 8,750 | ||
| $ 300,000 | $ 10,500 | ||
| $ 350,000 | $ 12,250 | ||
| $ 400,000 | $ 14,000 | ||
| $ 450,000 | $ 15,750 | ||
| $ 500,000 | $ 17,500 | ||
| $ 550,000 | $ 19,250 | ||
Conventional loans are loans made through lending institutions such as banks and credit unions. Most conventional loans require that you put a minimum of 10% down and, depending on your credit score, you may be required to put down even more.
Here are some examples of how much of a down payment you’ll need if you want to purchase a property using an Conventional Loan:
| Property Price | Down Payment | ||
| Amount | |||
| $ 100,000 | $ 10,000 | ||
| $ 150,000 | $ 15,000 | ||
| $ 200,000 | $ 20,000 | ||
| $ 250,000 | $ 25,000 | ||
| $ 300,000 | $ 30,000 | ||
| $ 350,000 | $ 35,000 | ||
| $ 400,000 | $ 40,000 | ||
| $ 450,000 | $ 45,000 | ||
| $ 500,000 | $ 50,000 | ||
| $ 550,000 | $ 55,000 | ||
As you can see from the information above, figuring out how much you’ll need for a down payment is simple. Of course, if you can put down more then the minimum amounts, that’s terrific. The larger the amount of your down payment, the less your mortgage will be.
