How Much Does A Down Payment Have To Be These Days?

July 23rd, 2010

It seems mortgage rules change frequently, below is the latest on down payment requirements. (UPDATED 11-04-2018)

For a primary residence you need a down payment of:

3.5% for an FHA Conforming loan ($453,100 or less).

3.5% for an FHA-Jumbo loan ($453,101 to $679,650, in high cost markets).

5% down for a Conventional Conforming loans ($453,100 or less).

5% down (this used to be 10% down) for a Conventional Conforming “High Balance” loan ($453,101 to $669,650, in high cost markets).

20% down payment for most Jumbo loans, or even 25% or more depending on the loan size.

An investment property typically requires a minimum of 20% down payment, although there may be options with 15% down but they would have mortgage insurance.

Investment property down payments may 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.

Brian Martucci is a loan officer for Capital Bank Mortgage, a division of Capital Bank. He has been in the mortgage industry since 1986 and has served in a number of roles, including loan processor, loan officer, mortgage broker, branch manager, and vice president. Brian Martucci – NMLS# 185421. His opinions do not necessarily reflect the opinions and beliefs of Capital Bank Mortgage or Capital Bank. Capital Bank, N.A.- NMLS# 401599. Click here for the Capital Bank, N.A. “Privacy Policy”.

Tags: ,

Bookmark and Share

Leave a Reply