You can purchase a home with as little as 0% if you are a Veteran or if you are purchasing a home in a rural area.
Otherwise, you can purchase a loan with as low as 3.5% down up to a loan size of $271,050.
Your loan amount is always based on the the lower of purchase price or appraised value. So, if you purchase a home for $175,000 and it appraises for $190,000, the loan is still based on the purchase price which is the lower of the two figures.
If the home were to appraise for $165,000, the loan would be based on the $165,000 appraised value since it is lower than the purchase price. In this case your option would be to renegotiate the price with the seller, walk away from the purchase or pay the difference in cash.
Feel free to contact me with any other mortgage questions.
The Private Mortgage Group
There can be a number of factors that go into how much downpayment is required by the lender, such as if you are a veteran, if you've owned a home before, how much you are trying to purchase a home for versus how much debt you have.
I do know Ryan who answered this question first and he is an excellent source as a loan officer to go to when you are ready to see how much you can be approved for and how much down payment will be required in your instance.
Please feel free to contact me with any questions as well for any of your real estate needs. Thank you and make it a great day!
REALTOR, Prudential Ambassador Real Estate
Ryan Shoemaker gave you a very good answer. He's local & is on top of what out there for you in terms of low down payments. IMHO, may I suggest you should give him a call to see how he can help you with your questions; he's local, too!
You should at least give him the "Best Answer" award...
Good luck & All the best,
Roswell Moore, CMPS
Certified Mortgage Planner
We are a Direct Lender, Mortgage Bank where we originate, process, underwrite and fund, in-house, FHA (w/a 580 score), 203k, VA, USDA, Jumbo, Conventional, loans to Canadians, Australians & other Foreign Nationals, on time. NMLS ID 263779 | AZ BK 0903725
You need to sit down with a qualified lender (in fact contact 2 for comparison) and discuss your options with regard to which programs are available, how much you can qualify for and what the costs associated with each type of loan are.
Purchase price is just the starting point, an appraisal will be required and that value will confirm the Loan-to-Value ratio.