Find A Lender

If it's time to find a mortgage professional that cares about your needs and financial outlook, use BeatMyBroker.com. We have a network of dedicated mortgage brokers and loan officers that are ready to give you a customized mortgage quote with the lowest interest rates and fees available.

Find Your Lender

Do I Need a Mortgage Down Payment?

You don't necessarily need a mortgage down payment when purchasing a home. There are some 100% financing options available for home buyers that cannot, or do not want to put anything down. However, the credit standards have tightened up quite a bit since 2007 so unless you have good credit, don't be surprised if a 100% financing option is not available for you. Additionally, Fannie Mae and Freddie Mac have deemed many areas as declining markets in terms of home values. Those areas that have generally weak real estate markets will not have 100% financing loans available. Instead, the highest loan to values loans allowed will be 95% or less in those areas.

If you don't have the best credit, but can prove your income with W2's or tax returns, an FHA loan might be a good choice. While FHA does not allow 100% financing, you can use a down payment assistance gift program like Nehemiah or Ameridream to have the seller gift you 3% down which is the minimum required by FHA. The down payment assistance programs are set to go away October 1st, 2008.

First time home buyer programs offered by Fannie Mae and Freddie Mac also allow small down payments. These small down payments are as low as 3-5% and can be a gift from a family member in some circumstances. To find out more about the need for down payments, talk to a BeatMyBroker.com mortgage professional. See the list below for a general requirement of a possible mortgage down payment scenario.

Mortgage Down Payments

Standard Conventional Mortgage:

  • 5%-20% down payment required
  • Private mortgage insurance required with less than 20% down

1stTime Home Buyer Mortgage:

  • 3%-5% down payment required
  • Down payment can be a gift from a relative
  • Private mortgage insurance required with less than 20% down
  • No Private mortgage insurance on some programs in exchange for higher interest rate
  • Some loan programs limit the amount of earned income for the borrowers

FHA Mortgage

  • 3% down payment required
  • 3% down payment can be a gift from the seller if using one of several gift programs (No longer allowed after 10/1/2008)

VA Mortgage

  • 0% down payment available for qualified veterans

Mortgage Rate
Analyzer

Could you improve your
interest rate?

Mortgage
Shopping
School

We show you 5 steps to help you get the mortgage you deserve. BeatMyBroker.com mortgage experts believe these tactics are some of the most important skills a borrower needs when searching for a mortgage.

Learn More