What is the normal down payment procedure when purchasing an existing home with a 30-year fixed rate mortgage?
As you know, you can finance up to 100% of the purchase price of a home. However, the more you can put down the better the loan program. The ultimate would be 20% down so you can avoid private mortgage insurance and have the choice to escrow taxes and insurance. There are programs to avoid private mortgage insurance even if you have as little as 5% down. Most would involve a 2nd mortgage that would carry the difference. This secondary loan is typical for 10-15 years and carry a higher interest rate than your primary loan. You would want to discuss these options with your lender to learn which program would fit your needs.
