Down Payment on a $240,000 House
% Down | Down Payment |
---|---|
3.5% | $8,400 |
5% | $12,000 |
10% | $24,000 |
15% | $36,000 |
20% | $48,000 |
25% | $60,000 |
Price | 20% Down |
---|---|
$240,000 | $48,000 |
$240,500 | $48,100 |
$241,000 | $48,200 |
$241,500 | $48,300 |
$242,000 | $48,400 |
$242,500 | $48,500 |
$243,000 | $48,600 |
$243,500 | $48,700 |
$244,000 | $48,800 |
$244,500 | $48,900 |
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 $240,000 house or condo, this would be $8,400.
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 $240,000 house, this would be $24,000.
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 240,000 house, this would be $48,000.
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 240,000 loan, this could be as high as $300 a month. Over time, if the buyer builds up equity in the house, PMI will no longer be required.