A down payment is the lump sum you pay towards the home’s purchase price when you close on the loan.
A down payment is the lump sum you pay towards the home’s purchase price when you close on the loan. It is a percentage of the purchase price. Conventional loans require a 3% down payment. In addition, you’ll pay closing costs to cover various fees associated with finalizing the sale, such as appraisal fees, title insurance, and legal expenses. These costs range from 3% to 6% of the purchase price. As a result, a $300,000 home will require at least $18,000 for the down payment and closing costs.