Down Payment Requirements by Loan Type
The minimum down payment depends on the loan type: 0% for VA and USDA loans, 3% for a conventional loan, 3.5% for an FHA loan (with a 580+ credit score), and typically 10–20% for a jumbo loan. The long-standing “20% rule” is a way to avoid mortgage insurance, not a requirement to buy.
A smaller down payment gets you into a home sooner but means a larger loan, higher monthly payments, and — below 20% down on a conventional loan — private mortgage insurance. The table below shows both the percentage and the dollar cost on a typical home.
Down payment on a $400,000 home
The same home can require anywhere from nothing down to $80,000, depending on the loan you qualify for. VA and USDA loans allow qualified buyers to finance the entire purchase, while a 20% down payment lets a conventional borrower skip mortgage insurance entirely.
| Loan type | Minimum down | Key condition |
|---|---|---|
| VA | 0% | Eligible veterans and service members |
| USDA | 0% | Eligible rural areas, income limits apply |
| Conventional | 3% | 620+ credit; PMI until 20% equity |
| FHA | 3.5% | 580+ credit (10% if 500–579) |
| Jumbo | 10–20% | Above the conforming loan limit |
| Conventional (no PMI) | 20% | Avoids private mortgage insurance |
Bigger vs smaller down payment
A larger down payment lowers your loan balance, your monthly payment, and your total interest, and at 20% it removes PMI. A smaller down payment preserves cash and lets you buy sooner — which can pay off when home prices and rents are rising faster than you can save.
There is no universally “right” answer. The trade-off is between getting into the market now versus borrowing less. Use the calculators below to compare the monthly payment and lifetime cost at different down-payment levels.
Down payment assistance
Most states and many cities run down-payment-assistance programs — grants, forgivable loans, or low-interest second mortgages — often aimed at first-time or moderate-income buyers. Combined with a 3% or 3.5% loan, these can shrink the cash needed at closing to a few thousand dollars.
Gift funds from family are also allowed on most loan types, subject to documentation. Ask your lender which programs you qualify for before assuming you need a large down payment.
What is the minimum down payment to buy a house?
As little as 0% with a VA or USDA loan if you qualify, 3% with a conventional loan, or 3.5% with an FHA loan. The 20% figure people cite is only what you need to avoid private mortgage insurance on a conventional loan.
Do I have to put 20% down?
No. Twenty percent lets you avoid PMI and lowers your payment, but most buyers put down far less. Conventional loans start at 3% down and FHA at 3.5%, while VA and USDA loans can require nothing down.
Which loan has no down payment?
VA loans (for eligible veterans and service members) and USDA loans (for eligible rural buyers within income limits) allow 0% down. Both let qualified borrowers finance 100% of the purchase price.
Is it better to put more money down?
A larger down payment reduces your loan, monthly payment, total interest, and removes PMI at 20%. But a smaller down payment preserves cash and lets you buy sooner, which can be worth more when prices are rising. It depends on your situation.