09/08/2023
Down payment requirements for a $300K house
The down payment amount you’ll need depends on the type of mortgage loan you choose. Let’s dig into how much you would need to put down for a $300,000 home with each of the five major loan programs:
Conventional loan: $9,000 (3% down). This loan conforms to Fannie Mae and Freddie Mac’s guidelines and typically asks for a minimum credit score of 620
FHA loan: $10,500 (3.5% down). Backed by the Federal Housing Administration, this loan allows for credit scores as low as 580 if you have a 3.5% down payment
VA loan: $0 (0% down). This great option is only available to military service members, veterans, and qualifying surviving spouses
USDA loan: $0 (0% down). If you’re buying in a designated rural area and have a moderate income for the area, this loan is for you
No-PMI conventional loan: $60,000 (20% down). If you want to avoid private mortgage insurance (PMI) you need 20% down. But you may find lenders that allow you to borrow a second mortgage to bridge the gap between your savings and that 20%
Of course, all these are minimums. As a rule of thumb, the more cash you put down, the lower your interest rate is likely to be. But don’t fret if you’re a little short on the 3% or 3.5% mark; you might still have some options.
Various down payment assistance programs (DPAs) are accessible across the country, offering grants or loans to help meet a portion or all your down payment needs. In some cases, these programs chip in to closing costs.
These valuable DPA programs can put homeownership within reach for first-time buyers who can easily afford mortgage payments but need some help gathering upfront cash.
