You may qualify for several mortgage types with as little as 5% down. Qualified veterans may be able to obtain a loan with no downpayment at all through the VA home load program. You will find that the higher the downpayment you can supply, the more types of loans and options may be available to you.

To cover the risk on lower downpayment loans, you may be required to purchase Private Mortgage Insurance (PMI) which protects lenders against loss. PMI is usually required for loans with less than 20 percent down.

Here is a comparison of the same $100,000 purchase with different downpayments. PMI is included in the 5 percent down example.

5% Down 20% Down
Purchase Price $100,000 $100,000
Loan Amount $95,000 $80,000
3 Points Paid $3,000 $3,000
Interest Rate 7.0% 7.0%
APR 7.5% $7.5%
Loan Term 30 Years 30 Years
Monthly PMI Premium $69.35 $0.00
Monthly Payments $632.04 $532.24

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