Down Payment on a $120,000 House
| % Down | Down Payment |
|---|---|
| 3.5% | $4,200 |
| 5% | $6,000 |
| 10% | $12,000 |
| 15% | $18,000 |
| 20% | $24,000 |
| 25% | $30,000 |
| Price | 20% Down |
|---|---|
| $120,000 | $24,000 |
| $120,500 | $24,100 |
| $121,000 | $24,200 |
| $121,500 | $24,300 |
| $122,000 | $24,400 |
| $122,500 | $24,500 |
| $123,000 | $24,600 |
| $123,500 | $24,700 |
| $124,000 | $24,800 |
| $124,500 | $24,900 |
FHA loans are loans issued by a bank, but backed by the federal government. They are intended for people can not qualify for a typical bank loan.
The minimum down payment on an FHA loans is 3.5%. For a $120,000 house or condo, this would be $4,200.
To qualify for a 3.5% down payment, you must have a credit score of at least 580.
Buyers with a credit score of 500 or higher are eligible for an FHA loan with a down payment as low as 10%.
For a $120,000 house, this would be $12,000.
All FHA loans require "mortgage insurance", which protects the FHA from people who default on their loan. This requires an upfront payment of 1.75% of the loan, as well as additional monthly payments.
Conventional loans are those offered by a bank which might have a variety of terms and rates depending on the amount down and factors such as credit score, debt, and income.
For conventional loans, it is standard to make a down payment of 20%. For a 120,000 house, this would be $24,000.
However, some loans offer down payments as low as 3% to buyers with excellent credit, high income, and large assets.
Buyers who can't put at least 20% down are often required to pay PMI. For a 120,000 loan, this could be as high as $150 a month. Over time, if the buyer builds up equity in the house, PMI will no longer be required.