How Much Do I Need for a Down Payment on a House?
/Norah Tanner, part of the Houzd Mortgage Team, is explaining how much money you actually need for a down payment when you buy a house. Let’s take a look.
Minimum Down Payment Percentages by Loan Type
One of the biggest questions homebuyers ask is: “How much do I need for a down payment?” The good news? You may not need as much as you think.
Down payment requirements vary depending on the loan program, your financial profile, and the type of property you’re buying. Below is a breakdown of the most common loan types and their minimum down payment percentages, explained in plain English.
Conventional Loans
Minimum down payment: 3%–5%
Conventional loans are the most common mortgage option and are not backed by the government.
3% down: Available for first-time homebuyers under certain programs
5% down: Standard minimum for many repeat buyers
20% down: Not required, but avoids private mortgage insurance (PMI)
Best for: Buyers with good credit and stable income
Keep in mind: PMI is required if you put less than 20% down, but it can usually be removed later.
FHA Loans
Minimum down payment: 3.5%
FHA loans are insured by the Federal Housing Administration and are designed to be more flexible.
Requires 3.5% down with a credit score of 580 or higher
Allows for higher debt-to-income ratios than conventional loans
Best for: First-time buyers or those with lower credit scores
Keep in mind: FHA loans include both upfront and monthly mortgage insurance, which typically lasts for the life of the loan.
VA Loans
Minimum down payment: 0%
VA loans are available to eligible veterans, active-duty service members, and some surviving spouses.
No down payment required
No monthly mortgage insurance
Competitive interest rates
Best for: Eligible military borrowers
Keep in mind: A one-time VA funding fee usually applies (though it may be waived for some borrowers).
USDA Loans
Minimum down payment: 0%
USDA loans are backed by the U.S. Department of Agriculture and are designed for rural and some suburban areas.
No down payment required
Income limits apply
Property must be in an eligible area
Best for: Buyers with moderate income purchasing in eligible locations
Keep in mind: USDA loans include a small upfront and monthly guarantee fee.
Jumbo Loans
Minimum down payment: 10%–20% (sometimes more)
Jumbo loans exceed the conventional loan limits set by Fannie Mae and Freddie Mac.
Down payment requirements vary by lender
Strong credit and reserves are typically required
Best for: Buyers purchasing higher-priced homes
Keep in mind: Guidelines are stricter than conventional loans.
So… How Much Do You Really Need?
While minimum down payments can be as low as 0–3%, the right amount depends on:
Your credit score
Monthly budget and comfort level
Long-term financial goals
Available loan programs
In many cases, buyers are surprised to learn they qualify for a loan with far less money down than expected.
Understanding your down payment options is a huge step toward confident homeownership. Whether you’re buying your first home or your fifth, the “best” loan is the one that fits your financial picture—not just the one with the lowest down payment.
If you’d like help figuring out which loan program makes the most sense for you, a quick conversation can go a long way.