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See what's happening with home values in more than 400 metropolitan areas with HSH's Home Value Tracker, just updated though the second quarter of 2022.

See what's happening with home values in more than 400 metropolitan areas with HSH's Home Value Tracker, just updated though the second quarter of 2022.

What is the down payment required to get a mortgage these days?

Keith Gumbinger

Q: What is the down payment required to get a mortgage these days?

A: While some 100% financing may be available (no money down) for special circumstances, most borrowers can still put as little as 3.5% down and successfully purchase or refinance a home. To do so, you'll need an FHA-backed mortgage, available virtually everywhere. You can get a Fannie Mae or Freddie Mac loan with as little as a three percent downpayment, but you will need a mortgage insurance policy; the costs for it will depend upon your credit strength and the kind and location of the property you are looking to finance or refinance. At times, these can be a challenge to come by with only a little money down.

Another avenue to explore: If you are a first-time homebuyer (haven't owned a home in at least three years), you may be eligible for down payment assistance programs in your state, county or city. Most of these programs are aimed at borrowers of more modest means.

If you're only got a minimal downpayment available for your purchase or refinance transaction, you can see the total costs of an FHA-backed mortgage over any given time horizon and compare those costs against those of Fannie Mae's HomeReady or Freddie Mac's Home Possible 3% down mortgage programs.

Ask the expert
Keith Gumbinger
Keith Gumbinger
Mortgage Expert
Vice President, HSH.com
About Keith: Mortgage market observer and analyst with 35 years experience... (more)
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Q: How are mortgage interest rates determined?
AUG 18, 2022
A:

Mortgage rates fluctuate from day to day, depending on a number of factors related to the economy and to choices made by investors. While some mortgage money comes from deposits held by banks and credit unions, most of the funds for borrowers come from investors in capital markets.

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A:

Mortgage rates are influenced by a variety of factors, rather than moving in lockstep with any one economic indicator. The stock market rises and falls for a wide variety of reasons, including global, economic and political issues, but as a broad rule of thumb, a rising stock market indicates optimism among investors about the economy.

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A:

For the most part, this is a discussion about time. You should compare the total costs of the difference in the two interest rates over your given time horizon.

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