Down Payment Basics:

A down payment is an upfront payment made towards the purchase of a home.
It’s typically expressed as a percentage of the home’s purchase price.
The down payment amount affects the loan amount, monthly payments, and overall affordability of the home.

FHA Loan Down Payment Requirements:

FHA loans, insured by the Federal Housing Administration, offer low down payment options for eligible borrowers.
The minimum down payment requirement for an FHA loan is typically 3.5% of the purchase price.
This makes FHA loans accessible to borrowers who may not qualify for conventional financing due to limited funds or lower credit scores.

Conventional Loan Down Payment Requirements:

Conventional loans, not backed by the government, typically have stricter down payment requirements.
While some conventional loans may offer down payment options as low as 3%, a down payment of 20% or more is often recommended to avoid private mortgage insurance (PMI) and secure more favorable loan terms.