Market Overview

Down Payment Requirements for Fannie, USDA, VA and FHA mortgages, According to Andy May, Owner


Find out in this simple grid, what you need to save for different mortgage products Fannie, USDA, VA and FHA, according to Andy May, owner.

RALEIGH, N.C. (PRWEB) May 26, 2018

Down payment requirements vary by government program. Nearly 100% of all 30 year fixed mortgages are provided by the US government. The consumer's goal should be to get the lowest cost method for getting a 30 year fixed government subsidized mortgage, and that's where comes in. At mortgages are delivered to the above government agencies for a lot less. These lower costs are passed on to the consumer, often times saving tens of thousands of dollars depending on which bank is compared.

Here, shows a simple spreadsheet (click on this spreadsheet on the right) that shows the following: Fannie Mae loans require a minimum of 3% down payment; FHA loans require a mimum of 3.5% down payment; VA loans require %0 and USDA require 0%.

In fact, with the USDA mortgage there is no seller concession limit (meaning the seller can pay for all the consumer's closing costs and escrow requirements). There is no better loan program on the planet. And yes, these are the same people that inspect our meat (well, ok, not exactly the same people - but the same government - USA!).

If the consumer has a 640 credit score and qualifies ( is where to go to get qualified), and the property qualifies (typically can't purchase in the central business district - needs to be further outside of urban areas), this is the best loan program the consumer will find.

Imagine that the consumer can purchase a dream home and it doesn't cost any money out of pocket. The consumer simply starts making payments about six weeks after moving into a new home.

Check out the grid that is attached for more information on Fannie Mae down payments, FHA, VA and USDA. Also, remember, the seller can pay at least 3% of closing costs (that's $3k per hundred thousand of debt) towards the buyer's closing costs and prepaids (prepaids generally are 1% of the purchase price and need to fund what's known as an escrow account).

Lastly, with a USDA mortgage a consumer will still need at least 2 payments in liquid assets (proven by 60 days of checking account statements) as well as about $900 in home inspection and appraisal costs (which may be refunded to the consumer at closing depending on the purchase and sales contract). Each transaction is different but one customer of stated, "I had no idea I needed so little money to purchase a home". That same customer was required to pay $0 to get that dream home, after closing. As stated above, 2 months of payments and $900 or so is required to qualify - but that money can stay with the consumer if the consumer is qualified to close on the purchase. is owned by Andy May Group, LLC and is a state licensed mortgage company in North Carolina and Virginia since 2005 (NMLS #88010, MLO #103418). Since 2005 the company has received Zero BBB complaints and treats customers as family. Family owned and operated from Raleigh, North Carolina the company serves military (VA mortgages), Jumbo, conventional, FHA, USDA and other families looking to obtain the lowest financing costs available. competes on rate and service and is located at 8522 Six Forks Road, Suite 201, Raleigh, North Carolina 27615. Andy May may be reached at 919 771 3379.

For the original version on PRWeb visit:

View Comments and Join the Discussion!
Fastest Market News Application
You'll Hear It First On Pro
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Trading Daily
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at