What are the requirements for a down payment?

When it comes to purchasing a home in South Carolina, potential home buyers must consider the requirements for a down payment. A down payment is the upfront cost you will pay for the property, paid directly to the seller. Depending on your circumstances, you may need to put down anywhere from 3% to 20% of the home’s purchase price. Conventional loans will require a minimum down payment of 3%, while FHA loans require 3.5%. The VA, which is backed by the U.S. Department of Veterans Affairs, can finance up to 100% of the purchase price for eligible service members and veterans. For those pursuing a jumbo loan, or a loan that exceeds the conforming loan limit of $510,400 in South Carolina, the down payment could range from 10-20%. This will depend on the borrower’s credit score and other qualifications. No matter what kind of loan you’re applying for, it’s important to keep in mind that the down payment does not cover other costs associated with the property purchase, such as title insurance, real estate taxes, and official closing costs. In addition, most lenders may require you to pay an extra 2-3% of the purchase price for private mortgage insurance. It’s a good idea to talk to a qualified residential real estate attorney before you make any decisions.

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What are the requirements for a down payment?

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