How much of a down payment do I need for a mortgage?

When applying for a mortgage in California, the amount of money you need for a down payment will depend on the type of loan you are applying for. Generally, a conventional loan will require a minimum down payment of 5% of the purchase price of the property. The Federal Housing Administration (FHA) loan program allows for a lower down payment of 3.5%. Other loan options, such as a Veterans Administration (VA) loan, may not require a down payment at all. In addition to the down payment, you will need to cover the cost of closing fees, which can range from 2-3% of the purchase price. You may also need to pay an additional fee for private mortgage insurance (PMI) if the down payment is smaller than 20%. The amount of money you need for a down payment can also vary depending on the amount of money you are borrowing and your credit score. For example, if you are borrowing a large amount of money, lenders may require a larger down payment. Similarly, borrowers with higher credit scores may be able to get away with a smaller down payment. It is important to carefully evaluate all of your mortgage options to make sure you are getting the best deal. It is also important to make sure you have enough funds saved up to cover the down payment and closing costs.

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