Dear Home Buyer, you'll Need to Save a Little More for your down payment if you making a home purchase using conventional financing starting next week. Yes, the minimum requirement is changing from 3% to 5% for this loan product.
So now for the $200,000 home purchase, your down payment will increase from $6000 to $10,000. Now, please remember that any time your down payment is less than 20% your mortgage will require the mortgage insurance. These premiums will be determined by the amount of your down payment and your credit score. The lower your credit score, the higher the premium.
There are no changes to the down payment requirements for the FHA mortgage program. This program is slightly different. The minimum down payment is 3.5% and the mortgage insurance premium is the same for everyone regardless of the credit score.
If you want to purchase a home with a minimal down payment, it is best to compare both programs side by side to determine which one will best meet your needs.