How much cash is required for each of the three types of mortgages?

VA - the least expensive of the three.

Requires 0 (zero) down payment.

Allows a seller to pay 4% of both the closing costs and pre-paids combined.

Allows the VA funding fee to be paid by veterans, sellers, or financed into the loan amount.

FHA - The least expensive method to mortgage for non-veterans is FHA.  LOW ACQUISITION is the description of the program.  As of 1 October 2008:

FHA requires a minimum cash investment of 3.5% of the sale price on the part of the purchaser.  The total cost for minimal down payment closing costs and pre-paids is about 10% of the sale price.  The difference may be paid by the Seller or lender (through above-par pricing).

FHA still allows the Seller to pay up to 6% of the sale price of the purchasers closing costs and / or pre-paids.

Conventional - Requires approximately 15% of the sales price to cover the closing costs and insurance pre-paids, and down payment.

•At 5% down payment, the closing and pre-paid expenses average another 10%.

•Conventional mortgages @ 95% loan-to-value ratio (LTV) allow the Seller to pay up to 3% of the sale price on behalf of the purchaser.

•Gifts from family are allowable with the first 5% of the purchaser’s own funds unless the down payment is 20% or more.

•Reduced down payment and qualifying may be available to clients who qualify under the FNMA Community Home Buyer Program and First Responder Programs.