Zero Down?! What They Don’t Tell You About Buying a House

How Much Money Do You Need for a Down Payment on a House?

Buying a home is exciting - but figuring out the down payment can be confusing. The truth is, how much money you need for a down payment on a house depends on the type of loan, your credit, and the property type.

VA Loans

Veterans Affairs (VA) loans often require zero down payment, unless part of your entitlement is tied to another property. These loans are designed to make homeownership easier for military service members. Learn more at the VA Home Loans official page.

USDA Loans

USDA loans, aimed at rural homebuyers, also offer zero down payment options. These loans come with income limits and geographic restrictions, so eligibility depends on your location and household income. More information can be found at the USDA Single Family Housing Direct Home Loans program and general USDA Rural Development site.

FHA Loans

FHA loans start at 3.5% down for borrowers with a credit score above 580. If your score is lower, down payments jump to 10%. Some programs allow down payment assistance, but terms vary. FHA loans are ideal for first-time homebuyers looking to minimize upfront costs.

Conventional Loans

Conventional loans can require as little as 3% down for a primary residence, but income limits may apply. For vacation homes, lenders usually require at least 10% down, and investment properties often need 20% or more. Fannie Mae and Freddie Mac have stricter rules for secondary properties, so planning ahead is key.

Planning Your Down Payment

Understanding your loan options helps you prepare financially and avoid surprises at closing. Remember, the more you can put down, the lower your monthly mortgage payments and interest costs may be. Consider talking to a trusted mortgage professional who can guide you through the process and help you choose the loan that fits your goals.

Ready to figure out exactly how much you need for your next home? Contact our team at Galaxy Lending Group today to get personalized guidance.