How Much Down Payment Money Do I Need for a Mortgage?

By
Mortgage and Lending with WealthWise Mortgage Planning, a Division of American Pacific Mortgage Corporation NMLS #1850 NMLS 244226

How Much Down Payment Money Do I Need for a Mortgage?sacramento mortgage

As a Sacramento mortgage broker, I get asked this question a lot during the prequalification process.

First, what is a down payment?  It's a percentage of the purchase price which is paid at the time the home is purchased. 

Here is a helpful list of how much you can finance with each of these loan products: 

  • Veteran's Administration (VA) loans:  up to 100% financing*
  • U. S. Department of Agriculture (USDA) loans: up to 100% financing*
  • Federal Housing Administration (FHA) loans:  up to 96.5% financing*
  • CalHFA: 99% financing*
  • Special financing programs for first-time buyers in 300+ localities (varying down payment amounts) 
    • Income restrictions on eligibility

 *          Based on the lesser of the sale price or appraised value.

Remember that each loan and down payment assistance product has specific guidelines; please call me at 916-849-9200 for details!

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Comments (4)

Larry Bettag
Cherry Creek Mortgage Illinois Residential Mortgage License LMB #0005759 Cherry Creek Mortgage NMLS #: 3001 - Saint Charles, IL
Vice-President of National Production

Ed....good words.  It's a great 101 for buyers!  Good stuff!

Jan 01, 2011 03:18 PM
Ed Gillespie
WealthWise Mortgage Planning, a Division of American Pacific Mortgage Corporation NMLS #1850 - Folsom, CA

Thanks, Larry!  And best wishes for a prosperous 2011!

Jan 01, 2011 03:21 PM
Kathleen Frawley
Keller Williams 916 730-4404 Elk Grove, Wilton, Folsom, Sacramento - Wilton, CA
South County Sacramento, 916 730 4404

Hey! this is GREAT stuff.  I get asked that all the time, I say 6% minimum...I like your answer better.  Thanks

Jan 01, 2011 03:26 PM
Ed Gillespie
WealthWise Mortgage Planning, a Division of American Pacific Mortgage Corporation NMLS #1850 - Folsom, CA

Thanks, Kathleen!  I have two clients doing 1% down loans right now.  This is a great opportunity for areas (likes ours) where home prices are so low.  Add in the HELP Program for those concerned about job security and, like I am sure you are telling your clients, this is a great time to buy!

Jan 01, 2011 04:19 PM