It seems mortgage rules change frequently, below is the latest on down payment requirements.
For a primary residence you need a down payment of:
3.5% for an FHA Conforming loan ($417,000 or less).
3.5% for an FHA-Jumbo loan ($417,001 to $729,750, in high cost markets).
5% down for a Conventional Conforming loans ($417,000 or less).
10% for a Conventional-Jumbo loan ($417,001 to $729,750, in high cost markets).
20%-25% down payment for most Jumbo loans, or even 30% or more depending on the loan size.
For an investment property you can currently only get a Conforming loan (loans up to $417,000) and that requires a minimum of 20% down payment.
I think investment property down payments will increase. The history of these loans is that they required 30% down when I first got in the business in 1986. In the early 2000's during the real estate boom, this quickly went to 20% down, then 10% down, and then even 0% down for a while! Then they went back to 10% down, and currently 20% down, next stop…?
And all of these requirements are subject to change due to credit scores, property type (multifamily properties may require more down payment, for example), and more.
Tags: down payment, underwriting
