How much down payment will be required?
Borrowers may qualify for several mortgage programs that require a low or even no down payment. Qualified veterans may be able to obtain a loan with no down payment at all through the VA home loan program. There are also several other programs that require no down payment. However, you will find that the greater the down payment, the more types of loans and options may be available to you. To cover the risk on lower down payment loans, you may be required to purchase private mortgage insurance (PMI) which protects lenders against losses. PMI is usually required for loans with less than 20 percent down. The cost of PMI will be reflected in slightly higher monthly payments and, possibly, an additional fee at settlement.
Borrowers may qualify for several mortgage programs that require a low or even no down payment. Qualified veterans may be able to obtain a loan with no down payment at all through the VA home loan program. You will find that the greater the down payment, the more types of loans and options may be available to you. To cover the risk on lower down payment loans, you may be required to purchase private mortgage insurance (PMI) which protects lenders against losses. PMI is usually required for loans with less than 20 percent down. The cost of PMI will be reflected in slightly higher monthly payments and, possibly, an additional fee at settlement.
