Loan Program Down Payments

What are the down payment requirements on different loans?

FHA – minimum of 3.5% down

USDA – 100% financing, no down payment required!

VA – 100% financing, no down payment required!

Conventional – minimum of 5% down

What are the loan program fees associated with each loan?

FHA – up front mortgage insurance premium of 1.75%, monthly mortgage insurance premium until 20% equity and five years of having loan

USDA – up front funding fee of 2.00%, small monthly insurance premium for life of the loan

VA – 2.15% up front funding fee for first time VA use, 3.3% up front funding fee for subsequent uses. No monthly mortgage insurance

Conventional – No up front charges, Private mortgage insurance charges until 20% equity is obtained.  If there is at least a 20% down payment there will be no mortgage insurance charged at all.

A reminder for VA loans: If there is a down payment between 5%-10%, the funding fee will be reduced to 1.50%.  If there is a down payment of 10% or more, the funding fee will be reduced to 1.25%.  This is applicable on loans of first time VA use or any subsequent use.

All up front funding fees and mortgage insurance premiums may be financed into the loan amount.

Call today for more information!

Danielle Hifko

New American Mortgage

910-581-6398