Jody Marr, Edina Realty Jody Marr, Edina Realty

Is there a typical down payment needed?

The typical down payment for a home varies widely depending on loan type and buyer circumstances:

  • 0% Down: Available for VA and USDA loans, typically for veterans or rural properties.

  • 3%-5% Down: Conventional loans start at 3% for first-time buyers, while insured conventional loans require 5%.

  • 3.5%-10% Down: FHA loans need 3.5% with a credit score of 580+ or 10% for lower scores.

  • 20% Down: Avoids private mortgage insurance (PMI) but is not mandatory.

  • Another loan option in Wisconsin is Wheda, Wheda is a down payment assistance program that helps buyers with their down payments.

The median down payment in 2024 was 8%, or $26,700

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