How Much Do You Need as a Down Payment on a House?

How much you need for a down payment on a house depends on the mortgage program, property, and your qualifications. Many buyers do not need 20% down. Some conventional loans may allow low down payments, while eligible FHA, VA, USDA, and down payment assistance programs can provide additional options.

Want a deeper explanation of why 20% down is not a universal requirement? Read our guide: Do You Need 20% Down to Buy a House?

Down payment requirements vary by mortgage program and borrower qualifications. Closing costs, prepaid expenses, and reserves are separate from the down payment and may also need to be considered.

• Conventional loans: Some conventional programs may allow eligible buyers to purchase with as little as 3% down. Requirements vary based on the loan program, credit profile, property, and other factors.
• FHA loans: Eligible borrowers may be able to purchase with as little as 3.5% down, subject to FHA and lender requirements.
• VA loans: Eligible veterans, active-duty service members, and certain surviving spouses may qualify for 100% financing with no required down payment, subject to VA and lender guidelines.
• USDA loans: Eligible borrowers purchasing qualifying properties in USDA-eligible areas may qualify for 100% financing with no down payment, subject to household income and other program requirements.

Can I Make a Lower Down Payment on a House?

Yes. Many conventional mortgage programs allow less than 20% down. Depending on the loan structure, private mortgage insurance (PMI) may be required when the down payment is below 20%. PMI protects the lender, not the borrower, and the cost can vary based on factors such as loan-to-value ratio and credit profile.

Can I put down a higher down payment?

Yes. A larger down payment can reduce the amount you need to borrow and may lower your monthly principal and interest payment. It can also affect mortgage insurance requirements and loan pricing. However, putting more money down is not always the best choice if it leaves you with too little cash for closing costs, reserves, repairs, or other financial priorities.