One of the most common questions I get as The Loan Jedi is about home loan down payments—especially from first-time buyers eager to understand their options. Depending on the loan program and your eligibility, down payments can range from 0% (for VA and USDA loans) up to over 20%. Conventional loans often start at 3%, while FHA loans are typically 3.5%. Making a 20% down payment helps you sidestep PMI, which otherwise adds between 0.5% and 1.5% annually to your costs. Remember, closing costs usually run 2%–5% of the loan amount as well. With so many paths available, finding the right fit comes down to understanding both the numbers and your unique situation—a process I’ve specialized in for years, ensuring clients get tailored mortgage solutions that work for them.
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