Loans By Kathy: Dear Home Buyer, You'll Need to Save a Little More

Dear Home Buyer, You'll Need to Save a Little More

Dear Home Buyer, you'll Need to Save a Little More for your down payment if you making a home purchase using conventional financing starting next week.  Yes, the minimum requirement is changing from 3% to 5% for this loan product.

So now for the $200,000 home purchase, your down payment will increase from $6000 to $10,000.  Now, please remember that any time your down payment is less than 20% your mortgage will require the mortgage insurance.  These premiums will be determined by the amount of your down payment and your credit score.  The lower your credit score, the higher the premium.


There are no changes to the down payment requirements for the FHA mortgage program.  This program is slightly different.  The minimum down payment is 3.5% and the mortgage insurance premium is the same for everyone regardless of the credit score.

If you want to purchase a home with a minimal down payment, it is best to compare both programs side by side to determine which one will best meet your needs.


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Kathy Sheehan Senior Loan Officer






Bay Equity LLC

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11475 Great Oaks Way, Suite 350, Alpharetta, GA 30002

800.BAY.3703 Bay Equity LLC NMLS ID#76988



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The opinions and general information in this blog are soley those of Kathy Sheehan.  Specifics regarding an individual case should be discussed in detail with a loan professional.  For a confidential consultation, please feel free to contact me via phone or email.  All terms and conditions are subject to change.


Comment balloon 5 commentsKathy Sheehan • November 13 2013 06:19PM


Kathy, Thank you for letting us know about this change. I had heard it was coming again but just didn't know exactly when. Happy Friday.

Posted by Debbie Reynolds, Your Dedicated Clarksville TN Real Estate Agent (Platinum Properties) over 5 years ago

Kathy, the lenders we work with have been requiring 5% anyway - no doubt in anticipation of this new rule. Thanks for the heads up.

Posted by Sharon Alters, Realtor - Homes for Sale Fleming Island FL (Coldwell Banker Vanguard Realty - 904-673-2308) over 5 years ago

That is a good chunk of change to come up with. Buyers would be wise to sit down with you to discuss the options.

Posted by Suzanne Otto, Your Montgomery County PA home stager (Six Twenty Designs) over 5 years ago

Debbie, always happy to provide useful information.

Sharon, we will be making the change starting next week.

Suzanne, thank you for the endorsement.

Posted by Kathy Sheehan, Senior Loan Officer (Bay Equity, LLC 770-634-4021) over 5 years ago

Was sad to see this one go Kathy.  We really need them to be ADDING programs & options to help home buyers, not taking away.  Ahhhh c'est la vie.

Posted by John Meussner, #MortgageMadeEasy Walnut Creek, CA 484-680-4852 (Mason-McDuffie Mortgage, Conventional Loans, Jumbo Loans, FHA, 203(k), USDA, VA,) over 5 years ago