Down Payment Requirements for Conventional Loans

Down payment requirements on conventional loans are dependent on several factors: Loan Amount, Property Type, FICO score and qualifying ratio.   The FICO score and qualifying ratio come into play primarily when you have less than 20% down and because we have to layer Mortgage Insurance company rules with normal lender rules.  20% down will get you the better interest rate, and it will also eliminate the need for Private Mortgage Insurance.

SFR: Single Family Residence (standing on its own; not a part of a development)

PUD: Planned Unit Development (generally known as a townhouse). It is rare to find a detached PUD, but do speak to your real estate agent about this.

DOWN PAYMENT REQUIREMENTS IN CALIFORNIA:

Up to $417k Loan Amount (Conforming Loan):

SFR/Detached PUD: 10% down minimum

Attached PUD/Condo: 15% down minimum

$417k – $729,750 Loan Amount (High-Balance Loan):

SFR/Detached PUD: 10% down payment

Attached PUD/Condo: 15% down payment

Above $729,750 (Jumbo Loan):

Please call me for this scenario.  The down payment requirement in the Jumbo Loan range tends to fluctuate; in addition, few lenders are participating in this loan level, so it depends on investor involvement and their portfolio at the time.

Published in:  on February 1, 2010 at 3:11 pm Leave a Comment

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