How much do you need for a down payment?

Almost all mortgage options require a down payment, which is the sum of money you pay up front to make up the difference between the price of the home and the amount of the mortgage. The amount of your down payment can influence what financing options and interest rates are available to you. And, the more money you put down, the less you’ll have to borrow.

Different types of loans each may have their own sets of requirements for a down payment. The down payment that’s right for you is the one that fits your budget and your loan selection.

If you’re thinking of buying a home, don’t let down payment concerns discourage you. There are several ways Wells Fargo can help you determine a down payment scenario that works for you.

• Down payment assistance programs offer gift funds or loans at below-market rates for borrowers who need help with a down payment and potentially closing costs. 
• Mortgage revenue bond programs are first-mortgage financing plans offered by state, county, city, and government authorities. These often include additional down payment and closing cost assistance exclusively for the use with bond programs. 
• Gift funds can be used for a down payment with many loan programs, as long as the funds are not expected to be repaid and come from an acceptable source.

Dream. Plan. Home. Mortgage is for first-time homebuyers who may qualify for a down payment as low as 3% on a fixed-rate loan. Keep in mind that with a low down payment, mortgage insurance will be required, which increases the cost of the loan and will increase your monthly payment. Talk with a home mortgage consultant about loan amount, type of loan, property type, income, first-time homebuyer, and homebuyer education requirements to ensure eligibility.

FHA loans provide options with down payments as low as 3.5%. While FHA loans have the benefit of a low down payment, consider all costs involved, including up-front and long-term mortgage insurance and all fees. Ask your home mortgage consultant/me to help you compare the overall costs of all your home financing options.

VA loans offer up to 100% financing for qualified buyers who are VA-eligible. They don’t require mortgage insurance, but you’ll have to pay a one-time funding fee at closing or into your loan amount.