Mortgage Down Payment Requirements For Conventional Loans Explained In A New Loan Love Guide

SAN DIEGO, June 24, 2014 /PRNewswire-iReach/ -- is a borrower advice website that has become a trusted destination for current news and expert loan advice. The website strives to empower borrowers with first class knowledge, valuable resources and connections to the top rated industry professionals. With the numerous articles available on their website, readers can inform themselves on the groundwork for getting the best mortgage loans available on the market and other mortgage related features. This includes mortgage down payment requirements for conventional loans, which Loan Love's latest article discusses.

The new article from Loan Love, titled "Conventional Home Loan Down Payment Requirements (Quick Checklist)" first begins by saying: "If you're ready to look for that next new home, it's a good idea to get your financial house in order first. Sitting down with a lender not only helps you understand the qualifications necessary for financing, but also provides you with the opportunity to get questions answered about the entire process, such as conventional home loan down payment requirements.

Often, a down payment is the biggest hurdle standing between renting and home ownership. If you will be seeking out a conventional home loan, there are a number of things to keep in mind as you consider pulling together funds for your down payment."

Loan Love tells loan borrowers to keep in mind that a down payment represents the amount paid on a home upfront as a percentage of what the home's selling value is. A down payment is usually paid on the closing of a mortgage loan and will usually reflect a loan borrower's eagerness to pay off a home loan to a lender, which can be play an important role in determining what kind of mortgage loan the borrower will get. Properties of a loan that can be affected by a down payment includes:

  • Whether or not private mortgage insurance (PMI) will need to be paid.
  • The interest rate amount on a mortgage loan.
  • What type of mortgage loans are available.

A down payment's amount will change from loan to loan, but generally speaking they will be anywhere between 5 to 20 percent for most loan borrowers. Other elements of a mortgage loan's down payment such as a loan-to-ratio is talked about in Loan Love's article which the article states:

"There are a number of things to take into account when deciding how large of a down payment you are able to put toward your home purchase. One important consideration is your loan-to-value ratio, which decreases as your down payment increases.

This figure represents how much you owe on your house after your down payment is applied. In other words, it's a percentage that reflects the ratio between your home's unpaid principal and the appraised value. A lower ratio is favored. The higher your down payment, the lower your ratio will be."

If a loan borrower is low on funds for a down payment, the Loan Love article recommends pooling from other sources to make the down payment, such as borrowing from a family member or friend. "Your real estate agent can also be an invaluable resource for helping you pull together the down payment. He or she may know about sate and local housing incentives that are available to you, as well as special loan programs or grants.

Before counting on these sources, however, it's wise to check with your bank, credit union or mortgage broker to be sure the source of your down payment is still in compliance with loan rules" the article mentions further.

To learn more on mortgage down payment requirements for conventional loans , please visit for the complete article. 

Media Contact: Kevin Blue,, 949-292-8401,

News distributed by PR Newswire iReach:




Business, Money


Banking & Financial Services, Real Estate, Residential Real Estate, Real Estate Transactions

Need Help