How the new 10% minimum down payment works

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In the market to buy a home in 2016? You may need raid the piggy bank. As of Feb. 15, 2016, there will be changes to the rules for government-backed mortgages.

Buyers in the market for homes worth less than $500,000, will still only need 5% down but any purchase over $500,000 will require a graduated 10% minimum down payment. That means for every dollar a house costs over $500,000, a buyer will need 10% to cover the down payment. For instance: Continue reading