Hello Homebuyers, this is Richard Woodward from The Richard Woodward Team at Nexa Mortgage, your friendly and authoritative guide in the vast world of real estate. One of the most common questions we get from prospective homebuyers is: “How much down payment will I need?” We’re here to demystify this topic and give you the answers you need.

Understanding the Basics of Down Payments

A down payment is an upfront payment you make when purchasing a home, while the remaining balance of the home’s price is financed through a mortgage. The size of the down payment can vary and is usually represented as a percentage of the property’s total cost.

Pro Tip: There are also closing costs paid to several different vendors as well as pre-paid items that include homeowners’ insurance and taxes.  This typically adds about 2-5% to the down payment.  We want you to be prepared.

Factors Affecting Down Payment Amounts:

1. Loan Type: Different loans come with different requirements. For example:
   • FHA Loans: Typically 3.5% down for borrowers with credit scores above 580 and 10% down for those with lower credit scores.  We also have a special program with 100% financing available to eligible borrowers. 
   • Conventional Loans: First-Time Homebuyers can put as little as 3% down, all others must put at least 5% down.
   • VA Loans: Can often be 0% for eligible veterans.
   • USDA Loans: Another 0% option for eligible rural and suburban homebuyers.
2. Credit Score: A higher credit score might qualify you for a lower down payment.
3. Property Location: Some local and state programs offer down payment assistance, especially for first-time buyers.
4. Home Price and Loan Amount: The actual amount you’ll need is based on the home’s price. A 10% down on a $200,000 home is $20,000.

Why The Richard Woodward Team at Nexa Mortgage Stands Out

This is where the real advantage comes in for our clients. With access to over 200 national lenders, our team is uniquely positioned to provide you with wholesale rates that most can’t.  Your bank just sells you their limited programs and tries to force you into their box. Why is this significant?

1. Competitive Rates: We can often find lower rates for you, which can save you thousands over the life of your loan.
2.  Super Low Fees: Our team doesn’t have to pay underwriters, so we don’t charge that typical fee of $495-$995.  We also don’t pay processor, we handle the paperwork for you, so we don’t charge that typical fee of $695-$1195.
3. Flexibility: With more lenders at our fingertips, we can find the perfect fit for your financial situation and needs.
4. Knowledge: We’re experts in navigating the intricate web of lenders and their offerings.

The Down Payment Questions Most Frequently Searched

For those of you looking to boost your understanding, here are some of the top keywords related to down payments:

• Down payment assistance – Yes, we have down payment assistance programs with up to 5% of the purchase price.
• FHA loan down payment – The official down payment requirement is 3.5% of the purchase price, BUT we have 100% FHA financing available.  Just ask!
• First-time homebuyer down payment- Down payment assistance is available from multiple sources.  Unlike your bank, we have tons to choose from.  We will find the right one for you.
• Minimum down payment for a home- well that depends on the loan type mostly, but zero down is available.
• Mortgage down payment percentage – well that depends on the loan type mostly, but zero percent down is available.
• Home loan wholesale rates -YES, you have come to the right place.  NEXA Mortgage is the nation’s largest broker with access to over 200 wholesale rate lenders.
• National lender rates for mortgages – As the nation’s largest mortgage broker, we shop for you to secure super low mortgage rates.
• Richard Woodward Team Nexa Mortgage

In summary, the amount of down payment you’ll need can vary based on several factors. It’s essential to do your research and consult with trusted professionals in the field. The Richard Woodward Team at Nexa Mortgage is always here to guide you through every step, leveraging our vast network of national lenders to ensure you get the best deal possible.

Ready to dive into homeownership? Contact us today and let’s chart the best path forward for you!