Down Payment
The upfront cash you pay toward a purchase, with the rest financed by a loan.
What does down payment mean?
A larger down payment means a smaller loan, a lower monthly payment and less interest. On a home, putting down 20% or more also avoids PMI. The down payment is separate from closing costs.
Put it to use
Down Payment — frequently asked
How much down payment do I need to buy a house?
It varies by loan: conventional loans start around 3%, FHA at 3.5%, and VA or USDA can be 0% for eligible buyers. Putting down 20% avoids PMI, but many buyers choose a smaller down payment to preserve cash.
Is a 20% down payment required?
No — 20% is a common target because it removes private mortgage insurance, not a rule. Plenty of buyers purchase with 3%–5% down and simply pay PMI until their equity reaches 20%, then have it removed.