Down Payment

How Much Down Payment is Needed to Purchase a Home?

Although each lender has a specific requirement for determining your down payment, there are some common factors that lead to their decision. These factors are the purchase price, the length of the loan, your credit rating and whether you are a first-time buyer.

For conventional mortgages, down payments are normally 20% of the purchase price. These loans are targeted to buyers that currently have a home and want to upgrade. These are not the only loans available.

It is possible to reduce your down payment below the 20% range. For example, government-insured mortgages such as those offered by the Colorado Housing and Finance Authority and the Veterans Administration can help you achieve a lower down payment rate. First-time home buyers can find low down payment programs with local housing agencies and some commercial lenders.

Other options for lending and getting a great deal on your down payment can be achieved through your local credit union (if you belong to one). This type of funding varies with the credit union involved, your credit history, and your length of service with the company.

Don’t be satisfied if the first mortgage company requires a large down payment. Research other options until you find one that suits your personal needs. There are a large number of lenders that all want the possibility of funding your new home. Spending time locating the right lender will mean whether you are happy and secure in your home or always on edge.
How much do I need for a down-payment?

Working with a variety of lenders gives the agents at The Berkshire Group an excellent perspective of financing and the best programs and lenders available. We stress to home buyers the importance of working with a credible lender, one who can be counted on to tell you the truth, meet deadlines with serious determination and to deliver the funds when it comes time to close. Many lenders can claim this, but don’t deliver the goods…It’s best to ask for a reference when letting someone handle so much of your money.

At The Berkshire Group, Realtors we don’t take or offer “kick-backs”. We prefer to provide unbiased real estate advice, with your best interest at heart. Dew Bugus you will see!


Colorado Housing and Finance Authority
Consumer Information Center
Fannie Mae Foundation
Manufactured Housing Institute
Mortgage Bankers Association
U. S. Department of Housing and Urban Development