Down payment is the amount that you will deposit at closing when purchasing a home. Usually the amount of purchase price above your down payment is financed through a home loan.
Down payments can vary depending on your loan type or even loan size. For instance, a qualified Veteran can purchase a home with 0 down. In some rural areas (check the USDA website on home ownership), 0 down payment is possible. Most loan program require a minimum down payment of 3% (conventional loan) or 3.5% (FHA loan).
When you make less than a 20% down payment, you most likely will pay for mortgage insurance. Mortgage insurance helps protect your lender in the case that you default on your loan.
Meet with your personal loan officer to discuss your down payment options in more detail or HOME ADVANTAGE can assist you in finding a home loan provider.