There are many mortgage loan options out there that allow you to put down considerably less than 20%.

As we were discussing ways to help our clients at the latest mastermind we’re currently attending in San Diego, a couple of things were brought to my attention about our market back in Louisville.

The first is a lack of inventory in the $100,000 to $350,000 price range. The second is a misconception among potential buyers about how much you need to put down to buy a home in the $100,000 to $350,000 range and the ranges above that.

How much do you really need to put down in your down payment? **The answer can vary depending on the type of mortgage loan you get. **

For FHA loans, there are no income restrictions and you only need to put 3.5% down. Veterans applying for VA loans don’t need to put any money down. Conventional loans require a minimum of 5% down, but you can use lender-paid mortgage insurance to lower your payments and give yourself the opportunity to afford more home. Plus, everything is tax deductible. If you can put 20% down, however, you can’t use private mortgage insurance.


Many people are under the assumption that they need to put down 20%, but that’s only true if you’re buying an investment property, and even that’s not a hard and fast rule. Fannie Mae guidelines have been loosened to the point where you can potentially only put down 15% to buy an investment property.

Through the Kentucky Housing Corporation, which provides down payment assistance, Sandie has been able to get her clients homes with no money down. They offer conventional loans, FHA loans, VA loans, or RHS loans.

If you have any questions about this topic or you’re thinking about buying or selling a home in our Louisville market, don’t hesitate to give me a call. We’d be happy to help you.