What are the requirements for a down payment?

In Kansas, the requirements for a down payment when buying a home depend on the type of loan you get. For conventional loans, the down payment amount can range from 3-20% of the total purchase price. This amount can be paid in cash or you can use a combination of other types of financing such as family gifts or loans. FHA loans are more flexible and require the borrower to put down a minimum of 3.5%. Along with this, the FHA also requires a monthly mortgage insurance premium to be paid. VA loans are available to current and former members of the U.S. military and require no down payment. The VA will guarantee a portion of the loan, and the lender accepts this as sufficient security. For those using USDA loans, there is no down payment required. However, the borrower must be within a certain income limit and the subject property must be within an eligible rural area. When considering a down payment, it is important to remember that having cash available for the purchase is a major negotiating tool. Borrowers who can put more down may be able to negotiate a lower interest rate, lower closing costs, or better terms on the loan.

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