Quick Ref – Minimum Down Payment:

• Conventional                    5%

• RD                                 none

• VA                                  none

• FHA                                3.5%

Conventional purchases

Maximum loan to value is 95%. The 5% down payment can come from the borrower but gift funds can be used as part, or all, of the down payment as well. Gift funds must be from a relative or family member in order to be eligible.

RD – (Rural Development/USDA purchases)

The combination of 100% financing and very low monthly mortgage insurance certainly makes Rural Development one of the most, if not the most popular loan program in our area for purchasing a home. Rural development is for eligible areas as determined by USDA. Certain income limits apply.

VA purchases

For veterans, a VA loan is almost always the best option for purchasing a house. VA loans not only allow for 100% financing, they also have zero monthly mortgage insurance. Funding fees are determined by VA based on type of service and whether or not the veteran has used this benefit before. In some cases, the veteran is exempt from the VA funding fee.

FHA purchases

max LTV 96.5%