HOME BUYER'S GUIDE

( Purchasing a Home with Little (or No) Deposit Required )

You may be able to buy a home with only a 3% down payment – or even no down payment for some lending options.

Find out how much of a down payment you need.

Are you putting money together for a down payment on a new home? You might not require as much as you believe. Many financing alternatives are available with a down payment of less than 5%, and some mortgages are offered with no down payment. While there are benefits to putting more money down, the amount you put down does not have to be a stumbling block.
Consult a Quicken Loans Home Loan Expert to determine the best low-down-payment option. Alternatively, you can apply for a mortgage with TAG Mortgage and see your alternatives online.
Popular Mortgages for Buying a House with a Small Down Payment (or None)
    • A 3.5 percent down payment is required for FHA loans. Here's how the numbers might shake out: If you're purchasing a $200,000 property with acceptable credit, your down payment could be $7,000 (or 3.5 percent).
    • Conventional loans, such as a 30-Year Fixed, can be obtained with as little as 5% down and 3% down for well-qualified purchasers.
    • Some lending programs, such as a VA or USDA loan, allow you to purchase a home with no money down.
Closing costs, or fees related to obtaining and securing your financing, are separate from the down payment. These can vary depending on the home's valuation and the type of mortgage, but they often range between 2% and 5% of the home's value.
Copy of Mortgage (1)

Down Payments and How They Work

A down payment is money paid in advance when purchasing a home. The amount of money you'll need to put down is decided by the home's price and the loan you're taking out.
You might want to consider putting down more than the minimum amount. Putting down a larger down payment upfront can save you money in the long term. Your interest rate and monthly payments will be lower the more you put down.
The size of your down payment and the type of loan you have will also impact whether you need mortgage insurance. Your monthly payments will be greater if you need mortgage insurance.
Use our affordability calculators to experiment with different figures to discover how your down payment and loan type affect your monthly payment.
 

TAG Lending Group Offers a Variety of Benefits

  • You get an entirely online application backed up by real people when you need it.
  • We service 99 percent of our mortgages, so you can count on us to provide excellent service even after closing.
  • You will not be charged a fee if you make your mortgage payments online.
  • There are no penalties if you pay off your mortgage early.