What Is The Average Down Payment For A First-Time Home Buyer Mortgage? The typical down payment for a mortgage for a first-time home buyer can differ significantly based on a number of variables, including the loan type, the property’s appraisal, and the buyer’s financial status.
- A conventional loan normally necessitates a 20% down payment of the house’s buying price. First-time homebuyers may be able to put down as low as 3% on a typical loan if they have good credit and a reliable source of income.
- Due to their 3.5% required down payment, FHA loans are a popular option for first-time homebuyers. Veterans and active duty personnel are eligible to apply for VA loans, many of which don’t require a down payment.
- It’s crucial to remember that a larger down payment may lead to reduced interest rates, monthly mortgage payments, and a total loan balance reduction.
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If you meet the requirements for first-time home buyer assistance, have a stable job, and have outstanding credit, you may be able to afford a smaller down payment.