How this number is made
The down payment is the part of the price you pay in cash. Closing costs sit on top of it. This page is only the down payment and the loan.
- Use the price in the contract, not the list price, once you have one.
- Percent down is of that price.
Formula
Down payment = price × percent. Loan = price − down payment.
Worked example
With the figures already in the form, cash down is $45,000.
Questions
Is 20% required?
No. Less than 20% often means mortgage insurance on a conventional loan. FHA and VA have their own minimums. Twenty percent is the point where conventional mortgage insurance usually drops off.
Does this include closing costs?
No. Use the closing-cost page and add the two cash figures.