Down Payments and Private Mortgage Insurance

Some lenders require 20 percent of the home's purchase price as a down

payment. However, many lenders now offer loans that require less than 20

percent down-sometimes as little as 5 percent on conventional loans. If a

20 percent down payment is not made, lenders usually require the

the lender in case the home buyer fails to pay. When government-assisted

programs such as FHA (Federal Housing Administration), VA (Veterans

Administration), or Rural Development Services are available, the down

payment requirements may be substantially smaller.

• Ask about the lender's requirements for a down payment,including what you need to do to

verify that funds for your down payment are available.

• Ask your lender about specialprograms it may offer.If PMI is required for your loan,

• Ask what the total cost of theinsurance will be.

• Ask how much your monthlypayment will be when including the

PMI premium.

• Ask how long you will be required tocarry PMI.

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