Aurora Mortgage Information
How Much Do I Need to Put Down?
The down payment concept is an easy one. The more money you can put down, the less your mortgage payment will be. Scraping up that initial down payment takes some effort. Though FHA loans require a less substantial down payment than conventional loans, it can still be a huge chunk of money for a young person or couple. Don’t lose hope if you don’t have the standard 20% in your account.
Most mortgage lenders require a cash down payment of anywhere from 5 percent to 20 percent of the sale price. Some lenders have zero-down mortgage programs that are still in existence, but these are rare. If you can put down more than your lender requires, say 25 percent to 30 percent, your lender may be willing to overlook credit blemishes. If you come up short on the down payment, with less than 20 percent of the buying price, before your loan is approved you may have to obtain private mortgage insurance, or PMI, to protect the lender.
GSF Mortgage Corporation is a full service mortgage company dedicated to customer service. We are there to help before, during, & after the transaction.