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SAN DIEGO, June 19, 2014--(PR Newswire)--

Down Payment Requirements For Conventional Home Loans - Loan Love Advises Borrowers On How To Get The Best Rates

PR Newswire

SAN DIEGO, June 19, 2014 /PRNewswire-iReach/ -- is a borrower advice website that is dedicated to empowering readers with first class knowledge, valuable resources and connections to top rated industry professionals in order to help them to find loans that they will love. Their helpful little guides cater to the needs of loan borrowers, such as home buyers looking for a conventional way of getting a down payment on a new home, something which Loan Love discusses in their newest article guide. With this new article, potential home owners are provided with insight on the down payment requirements for conventional home loans and other financing options that can be especially useful when securing a purchase on a new home.

This new article, titled "Conventional Home Loan Down Payment Requirements (Quick Checklist)" gives a brief heads up on home loan down payments for home buyers new to the scene: "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."

A down payment is an important step in financing a home loan because instead of it being financed, it represents a percentage of a home's selling price sum that is paid upfront rather being financed throughout the mortgage loan's life. This also puts a loan borrower in favorable circumstances with their loan lender, because a down payment shows a loan borrower's eagerness to make a personal investment in their home, which in the end can determine the kind a loan a borrower may receive. Certain aspects that a down payment can affect include:

  • Whether or not private mortgage insurance (PMI) will need to be paid.
  • The type of loan available to the loan borrower.
  • The interest rate of a loan.

Loan borrowers do need to take note however that down payment requirements will vary, with down payment requirements ranging anywhere from 5 to 20 percent. Another thing to consider is the loan-to-value ratio. This represents the amount of how much is owed on a home after down payment is applied. Generally speaking, a lower ratio will be preferable to a home owner. The higher the down payment is on a home, the lower the loan-to-value ratio will be. 

If a potential home buyer doesn't have any means of paying a down payment, Loan Love recommends using other sources for down payment, such as family or friends. Other sources the article mentions are stated with the following: "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.

One more word of caution: before pulling money out of a retirement account to cover your down payment, talk to your tax advisor. Be aware of any and all penalties that will come your way should you go this route."

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

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

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