What is a home down payment?

A home down payment is simply the part of a home’s purchase price you pay upfront, and does not come from a mortgage lender via a loan.

Suppose you want to buy a house priced at $100,000. If you were to put $3,000 toward the purchase price, or 3 percent down, you’d take out a mortgage for the remaining $97,000. If you were to put down $20,000, your mortgage would now be for $80,000, and your down payment would equal 20 percent of the purchase price.

0% is the minimum down payment for VA Approve/Eligible, VA Refer/Eligible and VA Jumbo transactions.

3.5% is the minimum down payment for FHA Approve/Eligible, Refer/Eligible, FICO 580-619 Approve/Eligible transactions.

3% is the minimum down payment for Fannie First-Time Homebuyers and Freddie Home Possible transactions.

5% is the minimum down payment on a primary residence for Fannie Fixed Rate, Fannie High Balance Fixed Rate, Freddie Fixed Rate and Freddie High Balance Fixed Rate transactions.

10% is the minimum down payment on a primary residence for Fannie ARM and Fannie High Balance ARM and on a second home for Fannie Fixed Rate and Fannie High Balance Fixed Rate transactions.

15% is the minimum down payment on an investment property for Fannie Fixed Rate and Fannie High Balance Fixed Rate, on a second home for Freddie Fixed Rate and Freddie High Balance Fixed Rate, and on an investment property for Freddie Fixed Rate and Freddie High Balance Fixed Rate transactions.

20% is the minimum down payment for Fannie ARM and Fannie Second Home transactions.

25% is the minimum down payment for Fannie ARM and Fannie Investment Property transactions.

The balance of the down payment may come from any of the following assets:

– Acceptable Assets and Reserves

– Gifts

– Gifts of Equity

– Grants

– Rent Credits

– Employer Assistance

– Trade Equity