For homebuyers1 min read
How much down payment you need
The 20% figure is a myth for most buyers. Here's what the low-down-payment programs allow and the trade-offs to weigh.
Twenty percent is not the rule
The idea that you need 20% down is one of the most common reasons people put off buying. It isn't a requirement, and plenty of buyers put down far less.
The low-down-payment options
Conventional loans can go as low as 3% down, FHA as low as 3.5%, and VA and USDA loans let qualified buyers put nothing down at all. Each has its own eligibility rules, which is why the right program depends on your situation.
The trade-offs
A smaller down payment means a larger loan and, on many programs, mortgage insurance until you build enough equity. A larger down payment lowers your monthly payment and can remove that cost. There's no single right answer; your loan officer can put the numbers side by side.
Questions about your own file?
A loan officer licensed in your state can run your actual numbers.
Keep reading
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Preparing for pre-approval
What a loan officer looks at, the documents worth gathering early, and how pre-approval differs from pre-qualification.
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How your credit affects your loan
What lenders look at beyond the score, how credit shapes your options, and the moves to avoid once you're shopping.
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Closing costs, explained
What the fees at closing pay for, where your official estimate comes from, and the ways they can be covered.
This guide is general information, not financial advice, a quote, or loan terms. Program availability and qualification vary. ALCOVA Mortgage LLC, NMLS #40508 (www.nmlsconsumeraccess.org). Equal Housing Lender.