A down payment is an initial payment made when something is bought on credit.
A down payment on a mortgage loan works the same way (except with VA loans, they require nothing down). Your total monthly mortgage payment is based on principal, interest, taxes, home owners insurance and private mortgage insurance.
In general, a down payment of at least 20 percent will let you avoid mortgage insurance and in certain instances you can use gift funds as a down payment option.
Check out our blog article: Creative Ways to Source a Down Payment for more ideas.
If you have any questions about your down payment options please feel free to contact a loan originator or fill out our quick quote form to start the conversation.
Download the full Down Payment Guide (PDF):