Down Payment on a $20,000 House
| % Down | Down Payment |
|---|---|
| 3.5% | $700 |
| 5% | $1,000 |
| 10% | $2,000 |
| 15% | $3,000 |
| 20% | $4,000 |
| 25% | $5,000 |
| Price | 20% Down |
|---|---|
| $20,000 | $4,000 |
| $20,500 | $4,100 |
| $21,000 | $4,200 |
| $21,500 | $4,300 |
| $22,000 | $4,400 |
| $22,500 | $4,500 |
| $23,000 | $4,600 |
| $23,500 | $4,700 |
| $24,000 | $4,800 |
| $24,500 | $4,900 |
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 $20,000 house or condo, this would be $700.
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 $20,000 house, this would be $2,000.
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 20,000 house, this would be $4,000.
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 20,000 loan, this could be as high as $25 a month. Over time, if the buyer builds up equity in the house, PMI will no longer be required.