Budgeting for a Down Payment

When purchasing a home, one of the most critical aspects to consider is the down payment. Your down payment not only influences your monthly mortgage payments but also affects you eligibility for different loan types. Understanding the down payment requirements for various loan programs can empower you to make informed decisions tailored to your financial situation and homeownership goals.

CONVENTIONAL LOANS:

Conventional loans are typically offered by private lenders. One of the most distinguishing features of conventional loans is the flexibility they offer in down payment requirements. At Renasant, conventional down payment requirements are as low as 3% for first-time homebuyers.

FHA LOANS:

FHA (Federal Housing Administration) loans are designed to assist with individuals with lower credit scores or limited down payment capabilities. With an FHA loan, borrowers can secure a mortgage with a down payment as low as 3.5% of the purchase price.

VA LOANS:

VA (Department of Veterans Affairs) loans are exclusively available to eligible military service members, veterans, and their spouses. One of the most significant benefits of VA loans is the ability to purchase a home with no down payment requirement. This feature can be immensely advantageous for those who have served in the military and may not have substantial savings for a down payment.

USDA LOANS:

USDA (United States Department of Agriculture) loans are targeted toward individuals purchasing homes in rural areas. Like VA loans, USDA loans offer the benefit of zero down payment, making homeownership more accessible for rural communities. Additionally, USDA loans often come with competitive interest rates and flexible credit requirements.

HOMEREADY AND HOME POSSIBLE:

HomeReady and Home Possible are mortgage programs designed to make homeownership more accessible to low-to-moderate income borrowers. Both provide options with low down payments, typically as low as 3%, and are flexible regarding borrower credit history and sources of down payment funds, including gifts and grants. Additionally, they offer reduced mortgage insurance costs and potential cancellation once certain equity levels are reached.

DOWN PAYMENT ASSISTANCE:

Renasant offers down payment assistance solutions for multiple loan products. In addition, our mortgage experts can check your eligibility on multiple down payment assistance loans and grants offered by the local housing authorities and non-profit organizations. Find out how you can bundle down payment assistance options with a mortgage loan from Renasant.