Homebuyer , do I need to put 20% down in Hawaii

Mortgage and Lending with Kamaaina Mortgage Group Inc.| Equal Housing Lender, NMLS 1276471 - NMLS 312260 NMLS# 312260 / 1276471


If you are not solid on the ins and outs of down payment, don't worry, you are truly not alone, There is so much misinformation floating around about down payments. Have you noticed on many payment calculators on like Zillow or Real-Estate Websites, the calculator is set at a 20% Down Payment, which makes you believe, this is what you should do, it can be hard to keep facts straight. Here is a Quick crash Course on the down payment. 


What is a down payment?

It's actually much simpler than you might think. The down payment is just the percentage of the home's total sale down payment is just the percentage of the home's total sale price that you pay with your own money. (The rest of the sale price is covered by your mortgage loan .)


Do I need to put 20% down?

Conventional mortgage loans require 20% down, which is why so many people think a home is out of reach. But different types of mortgage require different minimum down payments and depending on your credit score and other factors, you should make a down payment of 15, 10%, or sometimes even 5% or less. 


What is private mortgage insurance, and do I need it?

If you are putting less than 20% down, you will need private mortgage insurance ( PMI ) Just FYI: That will add a small amount to your monthly payment. 

  • Federal Housing Administration loans are popular because they only require a minimum down payment of 3.5% ( Yes they also require mortgage insurance ) 
  • VA Loans are for certain veterans and military on active duty. They don't require a down payment at all, but they do have a special property requirement.
  • USDA loans have a 0% down payment for certain homes in designated rural areas. These are only for people that meet certain income qualifications

Now you know the very basics ! if you have more questions, we would love to help you. Don't hesitate to reply to my email or call me at any time.


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