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Ryan’s Mortgage Blog:

The Down Payment requirement is another concern you need to be aware of when purchasing a home in today’s market. While it was usually standard to put at least 20% down several years ago(20th century), many people received loans over the last 5 or so years by putting very little (5% – 15%) or nothing down at all. Well, reality has struck the lending industry and requirements of late have gotten stricter as to how much you need to put down to qualify for a loan. There are still programs/loans out there for those who are first time homebuyers or who have little to put down but the rates are not that great. Think about it…who is more likely to “walk away” from paying their mortgage, someone who just put 20% down or someone who put 5% down? On a $500,000 loan that is a difference of $100,000. So to get a good rate today be ready to put at least 20% down, and if there are some questions as to your credit history, maybe put 30-40% down.

Taken directly from my company’s website here is some more info on Down Payment:

Documenting that the down payment comes from your savings and that you will have savings and/or assets over and above the down payment gives the lender confidence in your strength as a borrower and your ability to repay the loan.

Take extra care to document the sources for any monies to be used for the down payment or closing costs. Do not transfer large sums of money without first discussing with your mortgage consultant.

Acceptable Down Payment & Closing Costs Sources:

  • Cash in a bank account
  • Mutual funds / stocks / IRA / 401K
  • Proceeds from the sale of another property
  • Gift from an immediate relative
  • Liquidation of any asset
  • Borrow against an asset (401K)
If you have any questions or would like a rate quote, please contact me at or 805-540-0866.

Written by Keith Byrd - Go to Keith's Website/Profile