Do you have to have 20% down for conventional loan?

Asked by Tina, 99328 Tue Sep 4, 2012

Help the community by answering this question:

+ web reference
Web reference:


Kary Krismer, Agent, Renton, WA
Tue Sep 4, 2012
As noted by others, no you don't. But do keep in mind that FHA loans are assumable. That could be a real benefit to you if you want to sell your house after interest rates have gone up significantly. By assuming your loan the buyer could take advantage of your low interest rate, and should be willing to pay more for that right.

Unfortunately, no one knows when that will happen, or how far they will go up when they do go up.
0 votes
, ,
Tue Sep 4, 2012
Hi Tina, My name is Jon Bruch and I work at HomeStreet Bank. I have done business with Stacey Lange helping her clients obtain finacning for home purchases. A 20% down payment is not necessary for a conventional loan. However, mortgage insurance will be required if you do not have 20% down. Mortgage insurance for conventional loans is faily flexible as you can pay it monthly, or at closing as a lump sum. In some cases you can actually negotiate the seller pay for the lump sum, eliminating your mortgage insurance.

If you have specific questions please let me know and I can help you with your options. I can be reached at 206-389-4425 or

0 votes
, ,
Tue Sep 4, 2012
Hi Tina,

Nope, you can buy with as little as 5% down as long as you qualify or you could look into the no money down USDA mortgage since Waitsburg is an eligible area for it.

One of the best things about this mortgage is the monthly mortgage insurance is substantially less than an FHA or conventional mortgage and that's with no money down.

Here's an example: An FHA mortgage of $200,000 is going to have a monthly mortgage insurance payment of $208 but on a USDA mortgage it's only going to add $67 to your monthly payment.

The other nice thing is you can actually roll your closing costs into the loan as long as the appraised value supports it.

Please feel free to contact me for more information or help. You can also find info on my USDA Mortgage website by clicking the link below.

John Burke
Senior Mortgage Banker
ENG Lending
0 votes
Jirius Isaac, Agent, Kenmore, WA
Tue Sep 4, 2012
If your credit scores are good enough, you only need 5% down. You will, however, incur either lender or borrower paid mortgage insurance. Feel free to contac me offline if you need to discuss further. I am both a real estate broker & a mortgage loan originator.

Thanks, Your Friend in the Business
Jirius Isaac
Isaac Real Estate Team
Champions Real Estate Services
TriStar Finance #MLO-107799
Office: 425-483-6849 Cell: 206-841-9976

Winner of Seattle Magazines 5 Star
Real Estate Agent Best in Client Satisfaction Award
Mortgage Loan Originator Best in Client Satisfaction
0 votes
Search Advice
Ask our community a question

Email me when…

Learn more