A down payment is an initial payment made when something is bought on credit.
A down payment on a mortgage loan works the same way (except with VA loans, they require nothing down). Your total monthly mortgage payment is based on principal, interest, taxes, Homeowners Insurance, HOA dues (if in HOA) and private mortgage insurance (PMI).
In general, a down payment of at least 20 percent will let you avoid mortgage insurance. And in certain instances you can use gift funds as a down payment option.
If you don't have the money for a down payment don't worry, you may still be able to purchase a home! Your King Team at Get a Rate has 100% gift options available.
The gift must be from a down payment assistance program or a relative / significant other.
Contact us to go over all your mortgage options.