Down Payment on a $985,000 House
| % Down | Down Payment |
|---|---|
| 3.5% | $34,475 |
| 5% | $49,250 |
| 10% | $98,500 |
| 15% | $147,750 |
| 20% | $197,000 |
| 25% | $246,250 |
| Price | 20% Down |
|---|---|
| $985,000 | $197,000 |
| $985,500 | $197,100 |
| $986,000 | $197,200 |
| $986,500 | $197,300 |
| $987,000 | $197,400 |
| $987,500 | $197,500 |
| $988,000 | $197,600 |
| $988,500 | $197,700 |
| $989,000 | $197,800 |
| $989,500 | $197,900 |
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.
Note: Loans above $472,030 may not be eligible for an FHA loan, depending on location. You can check here.
The minimum down payment on an FHA loans is 3.5%. For a $985,000 house or condo, this would be $34,475.
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 $985,000 house, this would be $98,500.
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 985,000 house, this would be $197,000.
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 985,000 loan, this could be as high as $1,231 a month. Over time, if the buyer builds up equity in the house, PMI will no longer be required.