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Even in a hot real estate market, it’s possible to learn how to buy a house with no money down. The trick is, you need to know where to look. Zero-down home loans aren’t available everywhere and to every borrower, but if you do qualify and can find an area with a zero-down mortgage, homeownership could be much more attainable.

Here’s exactly what you need to know about how to buy a house with no money down.

Can You Buy a House With No Money Down?

You can buy a house with no money down with certain loan programs in certain areas. There are more homeowner resources to help you buy a home than you may realize, and first-time homebuyer qualifications can be more flexible than you know. Here’s where to look for and what to expect on a zero-down mortgage.

Recommended: Learn more about first-time home buyer programs.

How to Buy a House With No Money

Of all the things you need to buy a house, a down payment holds many buyers back. But there are a few avenues you can take to get a mortgage loan and buy a home with no money down.

•   Buy a home with a VA or USDA loan. These loans, from the U.S. Department of Veterans Affairs and the U.S. Department of Agriculture, are no down payment mortgages

•   Receive assistance for your down payment or closing costs from a state or local program or a family member

•   Receive a lender credit

•   Ask for a seller concession

Note: SoFi does not offer USDA loans at this time. However, SoFi does offer FHA, VA, and conventional loan options.

USDA Loan

A USDA loan requires no money down and is intended for buyers in rural areas. There are two ways the U.S. Department of Agriculture loans money:

•   Single-family housing direct loans

•   Single-family housing guaranteed program

The direct loans are issued by the USDA and come with a 33-year term for low- and very-low-income households. (Very-low-income applicants may stretch the repayment term to 38 years.) The guaranteed program is run through approved lenders with a 30-year fixed rate for low- to moderate-income households.

VA Loan

A VA loan guaranteed by the U.S. Department of Veterans Affairs is a zero down payment mortgage with low interest rates for qualified veterans, active-duty service members, certain reservists and National Guard members, and surviving spouses. Most borrowers pay a one-time funding fee, which can be rolled into the loan. Lenders can be more flexible with credit scores, mortgage amounts, and debt-to-income ratios.

Down Payment and Closing Cost Assistance Programs

Many city and state agencies offer different mortgage types and down payment assistance to buyers, especially low- to moderate-income homebuyers, first-time homebuyers, veterans, and people buying in federally targeted areas.

The terms vary. Sometimes the assistance for a down payment is in the form of a second mortgage that is repaid over time. Other terms include deferred payments that are only due if the property is sold, loans that are forgivable if the property is occupied by an owner for a specified amount of time, and even grants.

HUD, the U.S. Department of Housing and Urban Development, steers homebuyers to city, state, and nonprofit programs that offer down payment assistance.

Down Payment Gift From a Family Member

A down payment gift from a family member can also help you buy a house with no money down. The main thing to remember about a down payment gift from a family member is that the money must be properly documented with a gift letter. Your lender will likely provide a template to make sure you have all the crucial elements included.

Lender Credits

Lender credits are what you get when you agree to pay a higher interest rate in return for some money that the lender contributes toward your closing costs. The more lender credits you receive, the higher your rate will be. With some lenders, you can cover your closing costs entirely with lender credits. This is a common practice when refinancing a loan.

Seller Concessions

One strategy real estate agents have used is to ask for a credit from the seller, to be contributed toward the buyer’s closing costs. Making an offer above asking price in tandem with the seller concessions makes this option more palatable for sellers in a competitive housing market.

Recommended: Home Loan Help Center

The Takeaway

Learning how to buy houses with no money takes some research, but could be well worth your time. With a VA or USDA loan, down payment assistance, gift money, or lender credits, it is possible to obtain a no money down mortgage. Qualifying first-time buyers can also still catch a break with a conventional mortgage loan — some lenders will let you put just 3% down.

Looking for an affordable option for a home mortgage loan? SoFi can help: We offer low down payments (as little as 3% - 5%*) with our competitive and flexible home mortgage loans. Plus, applying is extra convenient: It's online, with access to one-on-one help.

SoFi Mortgages: simple, smart, and so affordable.

FAQ

Can cash gifts be used as a down payment?

Yes, but certain rules must be followed for the gift to be documented by the lender, usually in the form of a gift letter.

Are there any homebuyer grants?

Sometimes. They’re usually reserved for first-time buyers, veterans, or people buying homes in federally targeted areas. You might start a search for assistance with your state housing finance agency or HUD and then look for city and county programs.

What are down payment assistance programs?

Down payment assistance programs help homebuyers afford down payments and sometimes closing costs as well. This is done in the form of grants and loans and can vary by location.

What credit score do I need to buy a house with no money down?

For a zero down mortgage backed by the USDA or VA, lenders are advised to look at a borrower’s situation case by case. Approved USDA loan lenders usually require a minimum credit score of 640, though the department itself doesn’t have a credit score requirement.

Most VA loan lenders will want to see a credit score above 620, but again, the VA does not have a minimum credit score. Applicants may qualify with a score below 620 when debt, income, and the ability to shoulder future mortgage payments are given a close look.

Down payment assistance programs often require a minimum credit score of 620.

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Photo credit: iStock/Paperkites

SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.

SoFi Mortgages
Terms, conditions, and state restrictions apply. Not all products are available in all states. See SoFi.com/eligibility-criteria for more information.

*SoFi requires Private Mortgage Insurance (PMI) for conforming home loans with a loan-to-value (LTV) ratio greater than 80%. As little as 3% down payments are for qualifying first-time homebuyers only. 5% minimum applies to other borrowers. Other loan types may require different fees or insurance (e.g., VA funding fee, FHA Mortgage Insurance Premiums, etc.). Loan requirements may vary depending on your down payment amount, and minimum down payment varies by loan type.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.


Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.


External Websites: The information and analysis provided through hyperlinks to third-party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement.

^¹FHA loans are subject to unique terms and conditions established by FHA and SoFi. Ask your SoFi loan officer for details about eligibility, documentation, and other requirements. FHA loans require an Upfront Mortgage Insurance Premium (UFMIP), which may be financed or paid at closing, in addition to monthly Mortgage Insurance Premiums (MIP). Maximum loan amounts vary by county. The minimum FHA mortgage down payment is 3.5% for those who qualify financially for a primary purchase. SoFi is not affiliated with any government agency.
^†Veterans, Service members, and members of the National Guard or Reserve may be eligible for a loan guaranteed by the U.S. Department of Veterans Affairs. VA loans are subject to unique terms and conditions established by VA and SoFi. Ask your SoFi loan officer for details about eligibility, documentation, and other requirements. VA loans typically require a one-time funding fee except as may be exempted by VA guidelines. The fee may be financed or paid at closing. The amount of the fee depends on the type of loan, the total amount of the loan, and, depending on loan type, prior use of VA eligibility and down payment amount. The VA funding fee is typically non-refundable. SoFi is not affiliated with any government agency.

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If you’re shopping for a new home and traditional single-family houses are out of your price range or the mere idea of lawn mowing and tree trimming makes you sweat, a townhouse could be the answer. Many — but not all — buyers will find that townhouses rise to the occasion.

What Is a Townhouse?

Among the different home types, from condos to modular homes, are townhouses. But what is a townhouse, specifically? It’s a multi floor home with its own entrance that shares at least one wall (not floors or ceilings) with an adjacent townhouse. Townhomes may be part of a community of units with a uniform appearance, but that isn’t always the case.

Why Buy a Townhouse?

There are pros and cons of buying a townhouse, with benefits including the following:

•   Ownership

•   Affordability

•   Low maintenance

Here’s more about each benefit.

Ownership

It’s a bit tricky because some townhouses are sold as condos. If you buy a townhome as a condo, you will own just the inside of your unit. If you buy it as a townhouse, you’ll own the interior and exterior of the structure and the land under and sometimes around your property.

This means fewer restrictions on how you’d use your yard compared with a condo owner. Townhouse owners could, as just one example, have the right to grill in their private outdoor space.

Ownership of the structure and land also means that financing a townhouse is much less complicated than financing a condo. It’s basically the same as getting a mortgage for a detached single-family house.

Affordability

Townhouses are typically less expensive than detached single-family homes, which can be especially important in expensive cities and for first-time homebuyers. Townhouses can serve as space-efficient choices, too, in places where land is scarce.

Note that townhouses may be more expensive than a condo in the same community.

Low Maintenance

Yards are likely smaller and, if the townhouse is part of a homeowners association (HOA), you may benefit from its security protocols and maintenance of shared areas. In some cases, you can enjoy amenities like pools because of HOA membership.

Some home downsizers may appreciate the lack of interior and exterior sprawl to maintain.

Recommended: First-Time Homebuyer Guide

Disadvantages of Buying a Townhouse

Buying a townhome can also come with disadvantages, including:

•   HOA fees and restrictions

•   Lack of privacy

•   Stairs

Here’s more about each potential disadvantage.

HOA

If the townhouse is part of an HOA, there will be fees to cover shared services and spaces. Plus, HOA rules may limit how you can decorate your townhouse. Who is responsible for exterior repair costs can sometimes cause confusion. So be sure to find out the specifics of a townhome you’re interested in buying.

Lack of Privacy

Shared walls automatically mean less privacy than with a detached home, which can be especially problematic for families with young children. This can also be a consideration for young couples who may want to start a family or for other people for whom privacy is a plus.

Stairs

Because townhouses are multistory dwellings, residents will need to climb stairs, which can be challenging for those with temporary or permanent mobility issues. Plus, if someone is used to a larger yard, having a small lot with neighbors nearby can feel constraining.

How to Buy a Townhouse

When buying a townhome, there are several steps to take.

Find a Real Estate Agent

Very few buyers go it alone, so finding a real estate agent who is experienced in your geographical location can help you to make savvy choices. This agent can guide you through the process of finding the right townhouse and help negotiate the best deal for you.

Know the Market

An experienced real estate agent can look into comps, or recently sold townhomes in the area that are similar in size, condition, and features, and you can also use a real estate website to find asking prices of similar townhouses and other real estate in the area.

If more than one buyer is interested in the same townhouse, you’ll need to be clear in your mind about how much you’re willing to pay for the property and strategically make an offer without busting your budget.

Investigate the HOA Fees

If the townhouse is part of an HOA, you’ll want to know what the monthly fees will be and what they’ll cover.

You might ask when the HOA last raised the fee, by how much, and when any new increase might happen. Looking at the HOA’s budget and reserve study could also be a good idea. If the reserves are low, the community is at risk of needing a special assessment.

Shop for a Mortgage and Get Preapproved

If you’re shopping for a mortgage, you’ll benefit from looking at more than advertised interest rates. You can apply with more than one lender and then compare loan estimates.

You may want to compare the APR of different loans: The annual percentage rate reflects the interest rate, lender fees, discount points, and the loan term. If comparing, realize that escrow fees and mortgage insurance can skew the APR.

The loan estimate will also tell you what your monthly payment would be on your home mortgage. To get a sense of what a payment might be with different down payments, you can also use an online mortgage calculator.

By getting mortgage preapproval, you’ll know exactly how much of a townhouse you can afford to buy, which can give you the ability to bid on a property with confidence and compete with other buyers for a property of choice.

Order a Home Inspection

It’s a good idea to get the townhouse inspected inside and out. Also pay attention to how well neighbors are maintaining their properties.

The Takeaway

Buying a townhouse could be a good choice for first-time homebuyers, lawn-mower phobics, downsizers, and people priced out of the larger market. If you decide that buying a townhome is the right choice for you, you’ll probably need to apply for a mortgage.

Looking for an affordable option for a home mortgage loan? SoFi can help: We offer low down payments (as little as 3% - 5%*) with our competitive and flexible home mortgage loans. Plus, applying is extra convenient: It's online, with access to one-on-one help.

SoFi Mortgages: simple, smart, and so affordable.

FAQ

Is it worth buying a townhouse?

Townhouses, in general, don’t appreciate in value as quickly as detached single-family homes. But the purchase price is often lower.

Is a townhome a good first home?

A townhouse can be a good first home because of the low maintenance, and amenities may be included. Plus, the price is right for many first-time homebuyers.

Why shouldn’t you buy a townhouse?

Disadvantages can include a lack of privacy and usually a small yard. If an HOA is in place, ongoing fees and rules are involved. Plus, the stairs that come with townhomes may be challenging for some people to navigate.

How do I choose a good townhouse?

When buying a townhome, make sure that it has the features you want and need in a neighborhood where you’d like to live at a price within your budget. If it’s part of an HOA, ensure that the fees are palatable and cover what you expect them to.

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Photo credit: iStock/cmart7327

SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.

SoFi Mortgages
Terms, conditions, and state restrictions apply. Not all products are available in all states. See SoFi.com/eligibility-criteria for more information.

*SoFi requires Private Mortgage Insurance (PMI) for conforming home loans with a loan-to-value (LTV) ratio greater than 80%. As little as 3% down payments are for qualifying first-time homebuyers only. 5% minimum applies to other borrowers. Other loan types may require different fees or insurance (e.g., VA funding fee, FHA Mortgage Insurance Premiums, etc.). Loan requirements may vary depending on your down payment amount, and minimum down payment varies by loan type.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

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If you finance a home, the lender will have you sign either a deed of trust or a mortgage. A mortgage is an agreement between you and the lender, but a deed of trust adds a neutral third party that holds title to the real estate.

Many states allow either choice. Thanks to an easier foreclosure process, many lenders prefer a deed of trust to a mortgage, so it is important for borrowers to grasp the nuances of these documents.

Mortgage Loans 101

To understand the difference between a deed of trust and a mortgage, it helps to first know some mortgage basics. A mortgage is a loan that’s used to purchase a piece of real estate. First, the borrower applies for a loan from among the different mortgage types. Once approved, they sign a mortgage note, promising to pay the lender back over a specified time with agreed-upon terms. The real estate serves as collateral for the loan.

Note: SoFi does not offer a Deed of Trust at this time.

You may hear a mortgage note referred to as a promissory note. In any case, it’s a legally binding document.

Mortgage Transfer

A mortgage transfer takes place when a borrower assigns what is typically an assumable mortgage to another person. Most mortgage loans are non-transferable. That said, in the case of marital separation, divorce, death, or other unusual circumstance, a mortgage transfer is sometimes permitted.

FHA, VA, and USDA loans, insured by the government and issued by private lenders, are assumable if the buyer qualifies.

Mortgage Foreclosure

When a borrower defaults on making mortgage loan payments as agreed upon, the lender may start legal proceedings to take ownership of the property and resell it to recover funds owed to the financial institution.

A mortgage foreclosure can take place when a borrower doesn’t meet other terms of the agreement, but failing to make payments is the most common reason. A variety of mortgage relief programs help borrowers stave off foreclosure.

What Is a Deed of Trust?

Some states incorporate a deed of trust into their home loan process, while financial institutions in other states can choose to do so or not. A deed of trust is an agreement that’s signed at a home’s closing that states how a neutral third party — typically the title company — will hold legal title to the home until the borrower pays the loan off. (It is not the same thing as the deed to the house.)

Terms to know include the following:

•   Trustor: the borrower

•   Beneficiary: the financial institution loaning the money

•   Trustee: a third party that will legally hold the title until the loan is paid off

Deed of Trust Transfer

If the borrower pays off the mortgage loan, the third-party trustee dissolves the trust involved and transfers the title of the real estate to the borrower.

If the borrower sells the home before the balance owed is paid in full, the trustee takes the sales proceeds and pays the lender what is still owed and gives the borrower/trustor the rest of the money.

Deed of Trust Foreclosure

As with a mortgage, there are clauses in the deed of trust agreement that will trigger foreclosure proceedings. In this case, the trustee will sell the property and distribute the funds appropriately.

Similarities Between a Mortgage and a Deed of Trust

Both a mortgage and a deed of trust are used when someone buys a home and takes out a loan to complete the purchase. Under each structure, the lender has the option to foreclose on the home if terms and conditions agreed upon by the buyer are not met.

In states where either option is allowed, the lender will decide which one to use.

Key Differences Between a Mortgage and a Deed of Trust

Here’s the big one: ease of foreclosure by a private trust company when a deed of trust is in place. But let’s look at how all the differences line up, below.

	Mortgage	Deed of Trust
Number of parties	Two: borrower and lender	Three: trustor (borrower), beneficiary (lender), trustee
Transfers	Uncommon	Part of the transaction when loan is paid off
Foreclosure	Typically involves court	Typically handled outside court system, which is usually faster and less costly

How to Determine If You Have a Mortgage or a Deed of Trust

Although deed of trust versus mortgage differences may seem reasonably small, it can make sense to be clear about which one you have. Look at a mortgage statement to find your loan servicer and ask.

A longer route: Mortgages and deeds of trust are publicly filed documents, so you could seek out the local government agency that manages these kinds of records and get a copy.

The Takeaway

A deed of trust and a mortgage are the two main systems for securing home loans. One key difference is the presence of a neutral third party in deeds of trust. The trustee holds legal rights over the real estate securing the loan. It’s easy to get lost in the forest of mortgage matters. A mortgage help center can lend a hand.

Looking for an affordable option for a home mortgage loan? SoFi can help: We offer low down payments (as little as 3% - 5%*) with our competitive and flexible home mortgage loans. Plus, applying is extra convenient: It's online, with access to one-on-one help.

SoFi Mortgages: simple, smart, and so affordable.

FAQ

Who can be listed on a deed of trust or mortgage?

On a deed of trust, all three parties are listed: the trustor (borrower), beneficiary (lender), and trustee (third party that holds the title until the loan is paid in full). With a mortgage, there is no third party involved.

How are mortgages and deeds of trust recorded in public records?

A deed of trust will be filed and recorded in public records in the county where the house exists. A similar process takes place for mortgage deed recordings. The recorded documents could be located at a county clerk’s office, a public recorder’s office, or an office of public records.

Is your title separate from deed of trust and mortgage?

Yes. A title is a concept rather than a physical document like a deed of trust or a mortgage note, and it refers to a person’s legal ownership of a home or other property. When a property is sold, the title is transferred from the current owner to the buyer.

Does a mortgage involve a trustee like a deed of trust?

No. Deeds of trust require a trustee, but a mortgage does not.

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Photo credit: iStock/zimmytws

SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.

SoFi Mortgages
Terms, conditions, and state restrictions apply. Not all products are available in all states. See SoFi.com/eligibility-criteria for more information.

*SoFi requires Private Mortgage Insurance (PMI) for conforming home loans with a loan-to-value (LTV) ratio greater than 80%. As little as 3% down payments are for qualifying first-time homebuyers only. 5% minimum applies to other borrowers. Other loan types may require different fees or insurance (e.g., VA funding fee, FHA Mortgage Insurance Premiums, etc.). Loan requirements may vary depending on your down payment amount, and minimum down payment varies by loan type.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.


Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.

^¹FHA loans are subject to unique terms and conditions established by FHA and SoFi. Ask your SoFi loan officer for details about eligibility, documentation, and other requirements. FHA loans require an Upfront Mortgage Insurance Premium (UFMIP), which may be financed or paid at closing, in addition to monthly Mortgage Insurance Premiums (MIP). Maximum loan amounts vary by county. The minimum FHA mortgage down payment is 3.5% for those who qualify financially for a primary purchase. SoFi is not affiliated with any government agency.
^†Veterans, Service members, and members of the National Guard or Reserve may be eligible for a loan guaranteed by the U.S. Department of Veterans Affairs. VA loans are subject to unique terms and conditions established by VA and SoFi. Ask your SoFi loan officer for details about eligibility, documentation, and other requirements. VA loans typically require a one-time funding fee except as may be exempted by VA guidelines. The fee may be financed or paid at closing. The amount of the fee depends on the type of loan, the total amount of the loan, and, depending on loan type, prior use of VA eligibility and down payment amount. The VA funding fee is typically non-refundable. SoFi is not affiliated with any government agency.

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If you earn at least $240,000 to $300,000 a year, you may be able to afford an $800,000 mortgage, assuming you have no significant other debts. But the exact amount you can qualify to borrow — even if you’re in that salary range or higher — will depend on several other variables, including your credit score.

Read on for a look at how much income may be needed for an $800,000 mortgage, how income fits into the overall mortgage equation, and how lenders typically decide how much mortgage a homebuyer can handle.

What Income Is Needed to Get an $800,000 Mortgage?

You might think the loan amount you’ll receive when you apply for a mortgage will be based mostly on your household income. But income is typically just one of several factors a lender will consider when deciding how much someone can borrow.

The home mortgage loan you can qualify for generally depends on how much the lender believes you can reliably pay back. You can expect the loan company to run your financials through a few different checks and calculations to come up with that number. Here are a few things lenders may look at:

Income

Lenders will ask about your salary to help determine if you can make the monthly payments on the amount you want to borrow. They’ll also want to know how reliable that income is — so you may be asked how long you’ve had your job (or your business if you’re self-employed). If you’re wondering if your income is high enough to afford an $800,000 loan, you may want to use an online home affordability calculator before you apply for a mortgage. Or you might try prequalifying with one or more lenders.

Creditworthiness

Lenders will also check your credit score and credit reports to ensure that you’re financially responsible and have a history of paying your bills on time.

Down Payment Amount

Contrary to what many people believe, a 20% down payment isn’t required to get a home loan. You may be able to put much less down, depending on the type of mortgage you get. Still, a larger down payment can indicate to lenders that you’re serious about your investment, and that could impact your chances of qualifying for the loan you want.

Debt-to-Income (DTI) Ratio

You can also expect lenders to compare your monthly gross income to your existing monthly debts (credit cards, student loans, car payments, etc.) to help assess if you’ll be able to manage all your payments. This is called your debt-to-income ratio, (DTI = monthly debts ÷ gross monthly income.)

What Is a Good Debt-to-Income Ratio?

The Consumer Financial Protection Bureau advises homeowners to maintain a DTI ratio of 36% or less. And in general, that’s the number mortgage lenders are looking for, too. But some lenders may accept a DTI ratio of up to 43% — or even higher if the borrower can meet other criteria on certain types of loans.

What Other Factors Are Mortgage Lenders Looking For?

Here are a few formulas your lender — and you — may use to determine how much house you can afford on your income:

The 28/36 Rule

The 28/36 rule combines two factors that lenders typically look at to determine home affordability: income and debt. The first number sets a limit of 28% of gross income as a homebuyer’s maximum total mortgage payment, including principal, interest, taxes, and insurance. The second number limits the mortgage payment plus any other debts to no more than 36% of gross income.

For example: If your gross annual income is $240,000, that’s $20,000 per month. So with the 28/36 rule, you could aim for a monthly mortgage payment of about $5,000 — as long as your total monthly debt (your mortgage payment plus car payments, credit cards, etc.) isn’t more than $7,200.

The 35/45 Model

Another calculation lenders might look at is the 35/45 method, which recommends spending no more than 35% of your gross income on your mortgage and debt, and no more than 45% of your after-tax income on your mortgage and debt.

Let’s say your gross monthly income is $20,000 and your after-tax income is about $15,000. In this scenario, you might spend $6,750 per month on your debt payments and mortgage combined. This calculation offers a bit more breathing room with your mortgage payment — as long as you aren’t carrying a heavy debt load.

The 25% After-Tax Rule

This formula will give you a more conservative number to work with. With this calculation, you should spend no more than 25% of your after-tax income on your mortgage. So if you earn $280,000 and take home $17,733 a month after taxes, you might plan to spend $4,433 on your mortgage payments.

Keep in mind that these calculations can only give you a rough estimate of how much you can borrow. If you want to be more certain about the overall price tag and monthly payments you can afford, it may help to go through the mortgage preapproval process.

What Determines How Much House You Can Afford?

Here’s something else to consider when determining how much income is needed for an $800,000 mortgage: A house payment isn’t limited to just principal and interest. And the extra costs that may be tacked on every month can add up fast.

Some of the costs covered by a monthly loan payment can include:

Principal

Principal is the original amount borrowed to buy the home, minus the down payment. Each month, a portion of your payment will go toward paying down this amount.

Interest

Interest is the money you pay to the lender each month for giving you the loan. The interest rate you pay can be influenced by personal factors (such as the loan length you choose, your credit score, and your income) as well as general economic and market factors.

Homeowners Insurance

The cost of homeowners insurance also may be rolled into your monthly mortgage payment, with your lender paying the premium when it’s due.

Mortgage Insurance

Depending on the type of loan you get and the amount you put down on your home, you may be required to carry private mortgage insurance (PMI) or some other type of mortgage insurance policy. This insurance is designed to protect the mortgage lender if a borrower can’t make the agreed upon loan payments.

Property Taxes

A portion of your monthly mortgage payment may also go toward the property taxes you’ll need to pay your local government.

Recommended: Home Loan Help Center

$800,000 Mortgage Breakdown Examples

The monthly payment on a $800,000 mortgage can vary based on several factors, including the length of the loan (usually 15, 20, or 30 years) and the interest rate. A mortgage calculator can help you get an idea of what your payments might look like.

Here are some examples of how the payments for a $800,000 mortgage might break down. A mortgage calculator with taxes and insurance can show you how paying taxes and insurance changes the overall cost of your home.

30-Year Loan at 6% Fixed Interest Rate

Total Payment: $5,940
Principal and Interest: $4,796
Other Costs (estimated PMI, homeowners insurance, and property taxes): $1,144

15-Year Loan at 6% Fixed Interest Rate

Total Payment: $7,894
Principal and Interest: $6,751
Other Costs (estimated PMI, homeowners insurance, and property taxes): $1,143

30-Year Loan at 7% Fixed Interest Rate

Total Payment: $6,466
Principal and Interest: $5,322
Other Costs (estimated PMI, homeowners insurance, and property taxes): $1,144

15-Year Loan at 7% Fixed Interest Rate

Total Payment: $8,334
Principal and Interest: $7,191
Other Costs (estimated PMI, homeowners insurance, and property taxes): $1,143

Pros and Cons of an $800,000 Mortgage

According to Redfin, the median home sale price in the U.S. in May 2024 was $433,558. If you can qualify for a mortgage that’s around $800,000, there’s a good chance you’ll be able to find a pretty nice home. (A lot can depend on where you plan to buy, of course.)

The downside of borrowing $800,000 is that your payments could take a sizable slice out of your income every month. If you’re cutting it close and you experience an unexpected expense or temporary job loss, you may have trouble staying on track. You may want to speak with a financial advisor before committing to a loan of this size, to be sure it fits with your budget and your other goals.

Recommended: Best Affordable Places to Live in the U.S.

How Much Will You Need for a Down Payment?

A down payment is generally between 3% and 20% of a home’s purchase price. The amount you’ll need to put down can vary, though, depending on the type of mortgage loan you get.

Can You Buy a $800,000 Home with No Money Down?

You may be able to get a mortgage with no down payment if you can qualify for a government-backed VA home loan (from the U.S. Department of Veterans Affairs) or a U.S. Department of Agriculture (USDA) loan. These loans are insured by the federal government — which means the government will help pay back the lender if the borrower defaults on the loan.

Borrowers must meet specific requirements to qualify for both VA and USDA no-down-payment loans — and not all lenders offer these programs. But if you think you may be eligible, this could be an option that’s worth looking into.

Can You Buy a $800,000 Home with a Small Down Payment?

If you don’t meet the qualifications for a VA or USDA mortgage program, you might want to check out the requirements for an FHA loan (backed by the Federal Housing Administration) that allows you to make a down payment as low as 3.5%. There may be a limit on how much you can borrow with an FHA loan, depending on where you buy: In 2025, the limit may be as much as $1,209,750 in higher-cost areas. And in Alaska, Hawaii, Guam, and the U.S. Virgin Islands, the 2024 limit is $1,724,725.

Some private lenders will accept as little as 3% down on a conventional mortgage — so don’t overlook that opportunity when you begin loan shopping.

Is an $800,000 Mortgage with No Down Payment a Good Idea?

There’s no question that coming up with a down payment can be an obstacle to homeownership — especially for first-time homebuyers — and skipping that step can be appealing. It may help you get into a home faster or allow you to hold onto your savings for renovations, an emergency fund, or other financial goals.

It’s important to remember, though, that without a down payment it can take longer to build up equity in your home. And though you won’t have to pay for mortgage insurance with a no-down-payment government-backed loan, you can expect to pay an upfront funding fee for a VA loan and an upfront and annual guarantee fee for a USDA mortgage. A mortgage professional can help you weigh the pros and cons of different types of mortgage loans and determine the best move for your circumstances.

What If You Can’t Afford an $800,000 Mortgage Even with No Down Payment?

Here are a few steps to consider if it turns out you can’t afford the payments on an $800,000 mortgage:

Look for a Less Expensive Home to Buy

If you can’t find a home that fits your budget in your favorite neighborhood or city, you may want to widen your search area. Or maybe you could trim down your list of “must-haves” to get a home you still like but can better afford.

Wait Until You’re Earning More

If you expect your salary to increase as you continue moving up the ladder, you may want to put homeownership on hold until you’re earning more.

Wait Until You Can Save More

You may also choose to press pause on your home purchase while you save up more money. Creating a budget and trimming other expenses could help you reach your savings goal. If you can come up with a bigger down payment, you may be able to borrow less and limit your monthly payments to a smaller amount.

Alternatives to Conventional Mortgage Loans

If you can’t qualify for a conventional mortgage loan, you may have some alternatives to consider. Here are a few potential options:

Homebuyer Assistance Programs

As mentioned above, some buyers can qualify for a federal, state, or local first-time homebuyer program that can help lower the down payment, closing costs, and other expenses. There might be limits on how much income you can earn to qualify, the type of home you can buy, or the home’s cost.

Rent-to-Own

Another option might be to enter into an agreement to rent-to-own a home. With this type of arrangement, you start out renting, but the landlord agrees to credit a portion of your monthly payment toward purchasing the home.

If you can afford the payments but don’t have enough for a down payment or can’t qualify for the mortgage you want, this may be a way to start working toward homeownership. But it’s important to understand the downsides of the deal — including that you might lose money if you change your mind about buying the home, or if the landlord has second thoughts about selling.

Owner Financing

With owner financing, the person who’s selling the home serves as the lender for all or part of the amount the buyer borrows to make the purchase. Just as with a rent-to-own home, there are risks to this kind of agreement. But it can make homeownership possible if a traditional loan isn’t available.

Mortgage Tips

No matter how much you plan to borrow, buying a home is a big step. Here are a few things you may want to do to prepare:

Check Your Credit

If you aren’t sure where your credit stands these days, you can request a free copy of your credit report from each of the three major credit bureaus (Equifax, Experian, and Transunion). Checking your reports can give you an idea of what lenders might see when they evaluate your credit. If there are any errors, you can take steps to get them fixed. And if you see negative (but true) information in your reports, you can work on improving your credit habits. If you use a credit-score monitoring service, you may already know what your credit score is and if it needs a boost. Conventional lenders typically look for a minimum score of 620 to 640.

Work Out Your Housing Budget

Remember, your housing costs won’t be limited to principal and interest. It’s important to determine how much you might pay for insurance, taxes, homeowners association dues, general upkeep, and other expenses before you make the transition from renting to homeownership.

Find the Mortgage and Terms That Best Suit Your Needs

When you start mortgage shopping, you can decide whether you want a:

•   fixed vs. variable interest rate

•   conventional vs government-backed loan

•   shorter vs longer term loan

Remember that if interest rates drop significantly, if your financial situation changes dramatically, or if there are other loan parameters you wish to change down the line, a mortgage refinance may be an option.

Consider Getting Preapproved

Even if you’ve crunched the numbers yourself, going through the mortgage preapproval process with a lender may provide an even better estimate of how much you can afford to spend on a home. And having preapproval may give you an edge over other house hunters in a tight market.

The Takeaway

Getting a mortgage is just one of many steps in the homebuying process, but it’s an important one. Taking the time to do some research and/or ask for help from a professional could keep you from getting locked into a loan — or a home — that isn’t the right fit for you.

Looking for an affordable option for a home mortgage loan? SoFi can help: We offer low down payments (as little as 3% - 5%*) with our competitive and flexible home mortgage loans. Plus, applying is extra convenient: It's online, with access to one-on-one help.

SoFi Mortgages: simple, smart, and so affordable.

FAQ

How much would an $800,000 mortgage cost over 10 years?

Paying off a $800,000 mortgage over 10 years would cost a total of $1,090,060, assuming you have a 6.5% interest rate.

How much do you need to make to buy a $900,000 house?

If you earn $240,000 or more annually and/or if you can come up with a hefty down payment, you may be able to buy a home valued at $900,000, But you can expect lenders to look at other factors besides your income when deciding how much you can borrow, including your DTI ratio and credit score.

How do people afford $1.5 million homes?

An income of $500,000 or more a year could allow someone to qualify for a mortgage on a home valued at $1.5 million. Having two incomes contributing to the mortgage each month can help. But some people buy $1.5 million homes by putting down an extremely large down payment — for example after the sale of another residence. There are many factors that dictate what you can ultimately afford.

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Photo credit: iStock/vladans

SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.

SoFi Mortgages
Terms, conditions, and state restrictions apply. Not all products are available in all states. See SoFi.com/eligibility-criteria for more information.

*SoFi requires Private Mortgage Insurance (PMI) for conforming home loans with a loan-to-value (LTV) ratio greater than 80%. As little as 3% down payments are for qualifying first-time homebuyers only. 5% minimum applies to other borrowers. Other loan types may require different fees or insurance (e.g., VA funding fee, FHA Mortgage Insurance Premiums, etc.). Loan requirements may vary depending on your down payment amount, and minimum down payment varies by loan type.

^¹FHA loans are subject to unique terms and conditions established by FHA and SoFi. Ask your SoFi loan officer for details about eligibility, documentation, and other requirements. FHA loans require an Upfront Mortgage Insurance Premium (UFMIP), which may be financed or paid at closing, in addition to monthly Mortgage Insurance Premiums (MIP). Maximum loan amounts vary by county. The minimum FHA mortgage down payment is 3.5% for those who qualify financially for a primary purchase. SoFi is not affiliated with any government agency.
^†Veterans, Service members, and members of the National Guard or Reserve may be eligible for a loan guaranteed by the U.S. Department of Veterans Affairs. VA loans are subject to unique terms and conditions established by VA and SoFi. Ask your SoFi loan officer for details about eligibility, documentation, and other requirements. VA loans typically require a one-time funding fee except as may be exempted by VA guidelines. The fee may be financed or paid at closing. The amount of the fee depends on the type of loan, the total amount of the loan, and, depending on loan type, prior use of VA eligibility and down payment amount. The VA funding fee is typically non-refundable. SoFi is not affiliated with any government agency.
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.


Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.


Tax Information: This article provides general background information only and is not intended to serve as legal or tax advice or as a substitute for legal counsel. You should consult your own attorney and/or tax advisor if you have a question requiring legal or tax advice.

SOHL-Q224-1841811-V1

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A $100,000 mortgage comes with a monthly payment around $840. Your lender will look for income in the $28,000 range to make that monthly payment, assuming you don’t have debt already from a car payment or student loan, for example. This number assumes a 6.5% interest rate on a 30-year loan and includes an estimate for the principal amount, interest, taxes, and insurance.

If you’re wondering how we got to this income level, you’ll want to stick around to see exactly how to get the mortgage you need for the home you want. We’ll go through everything you should know about the income required for a $100,000 mortgage.

Income Needed for a $100,000 Mortgage

The income needed for a $100K home mortgage loan depends on your existing debt and down payment. The amount you’ll qualify for goes up and down based on how much you owe and how much you’re willing to put down. (This is where a home affordability calculator comes in handy.)

For example, if you put down $25,000 on a property that costs $125,000, your $100,000 mortgage works out to about $840 monthly, including principal, interest, taxes, and insurance on a 6.5% annual percentage rate (APR). That $840 should be at maximum 36% of your monthly income (assuming you have no debt), which means you need to make at least $2,333 per month, or $28,000 per year, to afford the payment.

Of course, your existing debt affects your $100,000 mortgage: If you’re carrying $400 in additional debt each month, you’ll need more income to qualify for the loan. Here’s a look at the math:

$840 mortgage + $400 additional debt = $1,274 total monthly debt

$1,274 is 36% of $3,539 per month, or $42,468 per year.

In other words, if you have $400 in debt and are looking for a $100,000 mortgage, you’ll need to earn $42,468 per year.

For the most accurate numbers, try using a mortgage calculator with taxes and insurance.

How Much Do You Need to Make to Get a $100K Mortgage?

To recap: For a $100,000 mortgage, you need to make a minimum of $29,138 per year. To get this number, we calculated the percentage of income based on the 28/36 rule of thumb, which states that mortgage payments should be 28% or less of your gross income and no more than 36% of your total monthly debts. Thus, if you have no debt, a lender could approve a monthly payment that is 36% of your income. Some lenders may be even more generous with these ratios.

A $100,000 mortgage at a 7% interest rate on a 30-year term with estimated taxes and insurance works out to be $874. Working backward, we find that $874 is 36% of $2,428 per month, or $29,138 per year.

Keep in mind, that number is without other debt. If you have a car loan or credit card bills, you’ll need to make a higher income.

What Is a Good Debt-to-Income Ratio?

Lenders look for debt levels below 36%, but your chances of qualifying for the mortgage you want improve drastically if you have a minimal amount of debt. Conversely, with a lot of debt, the loan amount you qualify for is much lower.

What Determines How Much House You Can Afford?

Qualifying for a mortgage involves balancing the following factors:

•   Income. Your income is one of the most important factors in determining how much house you can afford. Generally, the higher your income, the more house you can afford. But it’s not the only factor.

•   Debt. Debt is a huge factor in determining how much house you can afford. Every monthly debt payment you have is calculated in your debt-to-income ratio. When you have too much debt, you’ll struggle to qualify for the mortgage you want.

•   Down payment. The higher your down payment, the higher purchase price you can take on. It also changes how much you’ll qualify for because a 20% down payment eliminates mortgage insurance.

A million dollar mortgage seems like a high mark, but if you’re in a state with a high cost of living, it can be relatively common. If you do need to borrow that much, you’ll also likely need a jumbo loan, also called a nonconforming loan, which usually has more stringent requirements.

Whatever amount you need to borrow, take a look at a mortgage calculator or talk to a lender to take your individual situation into account and get the most accurate number.

What Mortgage Lenders Look For

To qualify for a $100,000 mortgage, you’ll want to look like a reliable borrower to the lender. For the best rates on a $100,0000 mortgage, lenders are going to look closely at the following factors:

•   Credit history. A credit history full of on-time payments, low credit balances, and only necessary credit inquiries is going to look great to a lender. If your credit has some imperfections, it may still be possible to get a mortgage for a $100,000 home.

•   Debt-to-income ratio. If you have too much debt, a lender isn’t going to approve you, no matter how high your credit score is. If you don’t meet the lender’s debt-to-income (DTI) ratio, you may be out of luck. Pay off some debt and try to qualify in the future.

•   Income. Income is the biggest factor that affects your odds of approval. Lenders want to see that you make enough to pay back the loan.

•   Down payment. A higher down payment represents less risk to the lender, and you may be rewarded with a lower interest rate on your mortgage. Remember that if you qualify for a mortgage but not at the best possible interest rate, you can consider refinancing in the future.

Recommended: Refinance Your Mortgage and Save

$100,000 Mortgage Breakdown Examples

To illustrate the income needed for a $100,000 mortgage, we’ve put together a few scenarios. All assume a 7% APR, but different debt levels will affect how much you qualify for. Keep in mind the taxes and insurance numbers may not reflect your area. The cost of home insurance in Florida, for example, is going to be much higher than in Utah.

When you break down a $100,000 mortgage, it will look similar to this:

Terms

•   Home purchase price: $125,000

•   Down payment: 20% or $25,000

•   Mortgage amount: $100,000

•   APR: 7%

Monthly payment: $874

•   Principal and interest: $665

•   Taxes and insurance: $209

If you don’t have a down payment, it’ll look more like this:

Terms

•   Home purchase price: $100,000

•   Down payment: 0% or $0

•   Mortgage amount: $100,000

•   APR: 7%

Monthly payment: $924

•   Principal and interest: $665

•   Private mortgage insurance: $92

•   Taxes and insurance: $164

You’ll notice that you have to pay PMI, an increase of $94. (PMI is required when the down payment is less than 20%.) However, taxes and insurance may be lower because you’re purchasing a less expensive property.

Recommended: Home Loan Help Center

Pros and Cons of a $100,000 Mortgage

When comparing the different types of mortgage loans, there are some benefits and drawbacks to a $100,000 mortgage.

Pros

•   Low monthly payment

•   May be easier to qualify for than a higher mortgage

•   Mortgage insurance premiums are smaller for lower mortgages

•   May allow home ownership vs. renting

Cons

•   Appreciation may come more slowly

•   A lower-priced house may not suit your needs in a few years

•   You might be buying a fixer-upper

How Much Will You Need for a Down Payment?

For a $100,000 mortgage, you may be able to qualify for loans with 0% down payment options. The chart illustrates several loan types and the minimum down payment required for each.

Loan type	Minimum down payment	Amount for a $100,000 loan
Conventional	3%	$3,000
Federal Housing Administration (FHA)	3.5%	$3,500
U.S. Department of Veterans Affairs (VA)	0%	$0
U.S. Department of Agriculture (USDA)	0%	$0

If you’re able to put down 20%, you’ll be able to avoid PMI, which is arguably the most hated fee on a mortgage. (If you have it, you’ll want to get rid of it as soon as possible.)

Recommended: Best Affordable Places to Live

Can You Buy a $100K Home With No Money Down?

There are some scenarios where you’ll be able to buy a $100,000 home with no money down. These options have 0% down payment requirements for borrowers who qualify.

0% Down Payment Mortgages

•   VA mortgages. VA mortgages are for qualified veterans and service members. A certificate of eligibility (COE) based on service and duty status is required. These loans have no down payment requirement.

•   USDA mortgages. USDA mortgages, designed for low- and moderate-income borrowers in rural areasm have no down payment requirement. The interest rate is comparable to a conventional loan, and the mortgage insurance is much lower than the FHA’s. It’s a good deal, so if you live in one of these areas, you’ll want to look more closely at this option.

Can You Buy a $100K Home With a Small Down Payment?

If you can find a $100K house, there are several ways to pull off a small down payment.

•   Conventional mortgages. Conventional mortgages have options for down payments as low as 3% of the purchase price. These loans require mortgage insurance, but do allow for it to drop off once the mortgage reaches 20% equity.

•   FHA mortgages. FHA mortgages allow for down payment options as low as 3.5% of the purchase price. The mortgage insurance is more costly and doesn’t ever go away, but FHA loans have more flexibility when it comes to credit requirements.

The other options for 0% down payment mortgages — VA loans and USDA loans — also apply here.

Is a $100K Mortgage with No Down Payment a Good Idea?

Absolutely. If you can find a home that requires just a $100K mortgage and can afford the payment, then a no-down-payment mortgage is a good idea. This is especially true if it can help you get into a home sooner.

A $100K mortgage with no down payment does come with a higher monthly payment because of the higher mortgage amount and required mortgage insurance premium.

Can’t Afford a $100K Mortgage With No Down Payment?

If you can’t afford a $100K mortgage with no money down, we have a few tips to help you qualify for a mortgage.

Pay Off Debt

Paying off debt is the secret formula to help you afford a home. When your debt is paid off, your lender doesn’t need to count anything toward your monthly debts. This leaves you with the ability to qualify for a higher mortgage amount.

Look into First-Time Homebuyer Programs

First-time homebuyer programs can help with down payment and closing costs assistance, homebuyer education, and rate buydowns. Most cities and states have some type of program to help first-time homebuyers, so you’ll want to research the program available in your local area.

Care for Your Credit Score

Your credit history is a key piece of the puzzle your lender is putting together, and it takes time to build. These ideas can help.

•   Check your credit report. Errors on a credit report are common. You’ll want to take a good look and see if there’s anything you can do to take better care of your credit. Can you pay off an account? Can someone add you as an authorized user on their account to help build your credit history?

•   Consider opening a credit account. You need to use credit to build it. If you have a limited credit history, consider opening a credit card or applying for a credit-builder loan. Pay your bill on time each month, and you’ll be on your way to building credit.

•   Automate your payments. Use your bank’s bill pay function to automate your payments. You’ll never miss a payment and build your credit history with beautiful, on-time payments.

Start Budgeting

Budgeting sounds boring, but tracking your money is the best way to get better control of it. When you know where your money is going, you can do powerful things with it. That includes saving a little bit every month for a down payment on a house.

Alternatives to Conventional Mortgage Loans

If you’re looking at alternatives to a conventional mortgage, here are some places to look:

•   Private lending. Private lenders may be able to help borrowers with special circumstances. You might pay a higher interest rate, but the lender also might have more flexible qualifications.

•   Seller financing. It’s possible to enter into an agreement with a seller where you pay them directly instead of the bank. Buyer and seller will agree upon the details privately.

•   Rent-to-own. Along the same lines as seller financing is the rent-to-own option, where the seller agrees to finance the property before the buyer is able to purchase it.

Mortgage Tips

Finding a mortgage that suits your needs is important. Here are a few quick tips to get you through the process of choosing a lender and finding the right mortgage for you.

•   Shop around. Different lenders have different mortgages, so be sure to shop around to find a mortgage with a rate, term, and conditions that work for you.

•   Compare loan estimates. Ask each lender you’re considering for a loan estimate and be sure to submit the same information to each lender (loan amount, loan type, etc.). This will give you a standard form from each lender that can help you compare the fees, interest rates, and terms of each loan offered before you go through the mortgage preapproval process.

•   Go with a reputable lender. It’s hard to know if a lender is going to be good from the get-go, but you can read reviews on Trustpilot and the Better Business Bureau to get an idea of what closing a loan with the company is going to be like.

The Takeaway

Affording a $100,000 mortgage requires reliable income, the right debt-to-income ratio, and healthy credit. There are a number of zero down payment mortgages that can aid your mission to buy a home. For most people around the country, the biggest problem is likely going to be finding a $100,000-$125,000 home. When you do find a home at an affordable price, you’ll need a minimum of $29,000 in income to qualify for the mortgage.

Looking for an affordable option for a home mortgage loan? SoFi can help: We offer low down payments (as little as 3% - 5%*) with our competitive and flexible home mortgage loans. Plus, applying is extra convenient: It's online, with access to one-on-one help.

SoFi Mortgages: simple, smart, and so affordable.

FAQ

How much house can I afford if I make $36,000 a year?

With an income of $36,000 per year, or $3,000 a month, going by the 28/36 rule, the amount of mortgage you’re looking for is between $840 and $1,080. With a 7% interest rate and homeowner’s insurance and taxes, that puts your purchase price at a maximum of $140,000, assuming you have no other debts.

What is the monthly payment on a $100K mortgage?

A monthly payment for a $100K mortgage sits at a little more than $900. This amount includes principal, interest, taxes, insurance, as well as mortgage insurance.

How much home loan can I get if I make $100K?

Without debt, the amount of mortgage you may qualify for if you make $100K is around $325,000. If your monthly income is $8,333, 36% of that amount is $3,000 that can go toward a housing payment. At a 7% interest rate, that works out to be about a $325,000 loan.

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Photo credit: iStock/ElenaMorgan

SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.

SoFi Mortgages
Terms, conditions, and state restrictions apply. Not all products are available in all states. See SoFi.com/eligibility-criteria for more information.

^¹FHA loans are subject to unique terms and conditions established by FHA and SoFi. Ask your SoFi loan officer for details about eligibility, documentation, and other requirements. FHA loans require an Upfront Mortgage Insurance Premium (UFMIP), which may be financed or paid at closing, in addition to monthly Mortgage Insurance Premiums (MIP). Maximum loan amounts vary by county. The minimum FHA mortgage down payment is 3.5% for those who qualify financially for a primary purchase. SoFi is not affiliated with any government agency.
^†Veterans, Service members, and members of the National Guard or Reserve may be eligible for a loan guaranteed by the U.S. Department of Veterans Affairs. VA loans are subject to unique terms and conditions established by VA and SoFi. Ask your SoFi loan officer for details about eligibility, documentation, and other requirements. VA loans typically require a one-time funding fee except as may be exempted by VA guidelines. The fee may be financed or paid at closing. The amount of the fee depends on the type of loan, the total amount of the loan, and, depending on loan type, prior use of VA eligibility and down payment amount. The VA funding fee is typically non-refundable. SoFi is not affiliated with any government agency.

*SoFi requires Private Mortgage Insurance (PMI) for conforming home loans with a loan-to-value (LTV) ratio greater than 80%. As little as 3% down payments are for qualifying first-time homebuyers only. 5% minimum applies to other borrowers. Other loan types may require different fees or insurance (e.g., VA funding fee, FHA Mortgage Insurance Premiums, etc.). Loan requirements may vary depending on your down payment amount, and minimum down payment varies by loan type.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.


Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.


Tax Information: This article provides general background information only and is not intended to serve as legal or tax advice or as a substitute for legal counsel. You should consult your own attorney and/or tax advisor if you have a question requiring legal or tax advice.

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