FHA Loans

• Loans that are underwritten by the Federal Housing Authority have minimum down payment requirements of 3.5 percent of the total sales price of the home. The down payment is due when closing on the property, not at the time the contract is agreed to. People taking out FHA loans will have to pay mortgage insurance
  
  

Conventional Loans

• Conventional loans require a home buyer to have a minimum down payment of 5 to 20 percent. The percentage is determined by a home buyer's available liquid assets as well as their individual credit score. In most cases, if a buyer does not have a 20 percent down payment, he will have to pay for private mortgage insurance.
  
  

VA Loans

• Loans from the Department of Veterans Affairs have no down payment requirement. However, the veteran must still pay closing costs charged by the lender and prepaid items such as property taxes or insurance for three months in advance.
  
  

USDA Loans

• U.S. Department of Agriculture loans are designed to spur growth in rural areas. These loans have no down payment requirement. However, buyers are still obligated to pay the closing costs from their lender and the title company, as well as three months of property taxes and insurance.
  
  

Considerations

• Most lenders will allow required down payments and other associated fees such as closing costs or prepaid items to be gifted to a home buyer by a friend or family member if the home buyer does not have these funds available. Prepaid items include, for example, property taxes and insurance that must be paid in advance for at least a three-month time span.