{"id":49136,"date":"2023-11-27T12:13:20","date_gmt":"2023-11-27T20:13:20","guid":{"rendered":"https:\/\/financer.com\/?page_id=49136"},"modified":"2024-05-06T07:53:57","modified_gmt":"2024-05-06T14:53:57","slug":"down-payment","status":"publish","type":"page","link":"https:\/\/financer.com\/loans\/glossary\/down-payment\/","title":{"rendered":"What is a Down Payment?"},"content":{"rendered":"\n

What is a Down Payment?<\/h2>\n\n\n\n

A down payment is an initial, upfront payment made when purchasing an expensive item or service, typically in the context of buying a house, car, or other high-value items. It represents a portion of the total purchase price and is usually paid in cash.<\/p>\n\n\n\n

At its core, a down payment is a commitment. It’s an investment in a future asset and demonstrates your financial stability to lenders. <\/p>\n\n\n\n

In real estate, it’s the percentage of the property’s purchase price that you pay upfront, typically ranging from 3% to 20%. For a car or other large purchases, the percentage can vary.<\/p>\n\n\n

Get Cash Today<\/a><\/div>\n\n\n

Down Payment by Mortgage Type<\/h2>\n\n\n\n

Here is a table that provides typical down payment amounts for various types of mortgage loans:<\/p>\n\n\n\n

Type of Mortgage Loan<\/th>Typical Down Payment<\/th>Available To<\/th><\/tr><\/thead>
Conventional Loan<\/a><\/td>3-20%<\/td>Borrowers with good credit<\/td><\/tr>
FHA Loan<\/a><\/td>3.5%<\/td>Low-to-moderate income borrowers<\/td><\/tr>
VA Loan<\/a><\/td>0%<\/td>Veterans and military members<\/td><\/tr>
USDA Loan<\/a><\/td>0%<\/td>Rural and suburban homebuyers<\/td><\/tr>
Jumbo Loan<\/td>10-20%<\/td>Borrowers buying high-priced homes<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n