Down Payment Rates
5% Down Mortgage Rates - Live Wholesale Pricing
5% down is the standard Conventional minimum for repeat buyers. FHA (3.5%) and VA (0%) are also options. Mortgage insurance is required on Conv and FHA at this LTV.
Conventional Loan Facts
- Down payment as low as 3% for first-time homebuyers, 5% for others
- Down payment assistance programs available to fully cover the 3% down payment
- Private Mortgage Insurance (PMI) required below 80% LTV - automatically removed at 78%
- Maximum DTI typically 45%, up to 50% with strong compensating factors
- Minimum credit score generally 620; best rates at 740+
- Available for primary residence, second home, or investment property
- No upfront mortgage insurance premium - only monthly PMI if applicable
Down Payment by Home Price
5% down at common purchase prices:
| Home price | Down payment | Loan amount |
|---|---|---|
| $300,000 | $15,000 | $285,000 |
| $400,000 | $20,000 | $380,000 |
| $500,000 | $25,000 | $475,000 |
| $600,000 | $30,000 | $570,000 |
| $750,000 | $37,500 | $712,500 |
Frequently Asked Questions
Can I buy a house with 5% down?+
Yes. 5% down is fully eligible on Conventional, FHA, and VA loans. Mortgage insurance is required until your LTV reaches 80%.
Is 5% down enough to avoid mortgage insurance?+
No - to avoid Conventional mortgage insurance you need at least 20% down (80% LTV). At 5% down, MI is required until the loan amortizes to 80% LTV (or, on owner-occupied loans, you request removal at 80% based on current value with a new appraisal).
What does 5% down on a $400,000 house look like?+
Down payment: $20,000. Loan amount: $380,000. LTV: 95%. The pricer above is preset to this scenario - see live rates in seconds.
Will my rate be higher with 5% down vs 20% down?+
Slightly. Conventional loans use risk-based pricing adjustments that include LTV. Each LTV bucket (95, 90, 85, 80) is a meaningful pricing step. The difference between 5% down and 20% down can be 0.125% to 0.5% in rate equivalent, depending on FICO. FHA is less LTV-sensitive in pricing.
Is FHA or Conventional better at 5% down?+
Often FHA at low FICOs (<700), often Conventional at higher FICOs (>720) because FHA's monthly mortgage insurance is not removable for the life of the loan unless you put 10%+ down. The pricer compares both side by side.
Is the $2,000 Best Price Guarantee available at 5% down?+
Yes. The Loan Factory $2,000 Best Price Guarantee applies to qualifying fixed-rate Conventional, FHA, and VA loans of $200,000+ regardless of down payment.
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