Pacific Escapes Real Estate, inc

The amount required for a down payment on a home depends on the type of mortgage and the price of the property. There are numerous mortgage programs that allow you to make a smaller down payment than the conventional 20%.

For example, with an FHA loan, you can put as little as 3.5% down. However, you will have to pay mortgage insurance, which can add significantly to the cost of your loan.

VA loans, which are available to military members, veterans, and their families, allow you to put no money down at all.

In general, the greater the down payment, the lower your monthly payments, and the less interest you will pay over the life of the loan. Obtaining a substantial down payment can be challenging, especially for first-time homebuyers.

Talking to a lender is a good idea if you want to find out about the mortgage programs you can use and how much you will need for a down payment. They can help you figure out what’s best for you based on the trade-offs between a larger down payment and lower monthly payments.