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.

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Brian Martucci is a loan officer for Capital Bank Home Loans, a division of Capital Bank, N.A. 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 Home Loans or Capital Bank. Capital Bank, N.A.- NMLS# 401599. Click here for the Capital Bank, N.A. “Privacy Policy”.

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