How Much Down Payment Do You Need for a House?

Yellow piggy bank with a wooden house

Quick answer

You do not need 20% down. Conventional loans can require as little as 3% to 5%, FHA loans 3.5% with a 580+ credit score, and VA and USDA loans 0% for eligible buyers. On a $350,000 home, 3.5% down is $12,250, 10% is $35,000 and 20% is $70,000, plus closing costs of about 2% to 5% of the loan.

Yellow piggy bank with a wooden house

The 20% down payment rule is a myth for most buyers. Here is how much down payment for a house you really need by loan type, what different amounts cost upfront and monthly, and how to decide how much to put down.

Minimum down payment by loan type

Loan typeMinimum downWho qualifies
Conventional (first-time buyer programs)3%Many first-time and moderate-income buyers
Conventional (standard)5%Most buyers with good credit
FHA3.5% (with 580+ credit score)Lower credit scores accepted; 10% if 500 to 579
VA0%Eligible veterans, service members and some spouses
USDA0%Eligible rural and suburban areas, income limits
JumboOften 10% to 20%Loans above conforming limits
General program rules. Lenders may set stricter requirements.

So you do not need 20% down to buy a home. Many buyers, especially first-time buyers, put down less than 10%.

Down payment amounts by home price

Down payment$250,000 home$350,000 home$450,000 home
0%$0$0$0
3%$7,500$10,500$13,500
3.5%$8,750$12,250$15,750
5%$12,500$17,500$22,500
10%$25,000$35,000$45,000
20%$50,000$70,000$90,000
Down payment only. Closing costs of about 2% to 5% of the loan are extra.
How much down payment for a house – Single-story red brick house
You can buy with as little as 3% to 3.5% down on many loans.

How your down payment changes the monthly cost

Example: a $350,000 home at 6.5% for 30 years, with PMI estimated at 0.6% a year when you put less than 20% down.

DownCash downLoanPrincipal and interestPMIP&I + PMI
3%$10,500$339,500$2,146$170$2,316
5%$17,500$332,500$2,102$166$2,268
10%$35,000$315,000$1,991$158$2,149
20%$70,000$280,000$1,770$0$1,770
Taxes and insurance not included. Example rate and PMI only.

Going from 5% to 20% down on this home lowers the monthly payment by about $500 (including PMI), but requires about $52,500 more cash upfront.

Should you put 20% down?

  • Pros of 20%: no PMI on a conventional loan, lower monthly payment, more equity from day one, and sometimes a better rate.
  • Cons of 20%: it can take years to save, and it can drain your emergency fund.
  • A good middle ground: put down enough to keep the payment comfortable, keep 3 to 6 months of expenses in savings, and plan to remove PMI later. See how PMI works.

Never empty your savings for a bigger down payment. Keep an emergency fund after closing.

Where down payment money can come from

  • Your savings and checking accounts.
  • Gift funds from family (with a signed gift letter).
  • State and local down payment assistance programs. See first-time buyer programs.
  • Employer homebuyer benefits.
  • Some retirement account options (check penalties and taxes first).
Couple carrying a large box and a plant
Remember to budget for closing and moving too.
Single-story red brick house

Down payment plan

  1. Pick a target home price.
  2. Check the minimum for your loan type.
  3. Add 2% to 5% for closing costs.
  4. Keep 3 to 6 months of savings.
  5. Look for assistance programs.

How much down payment for a house, plus closing costs: total cash needed

When you work out how much down payment for a house you need, remember the down payment is only part of the cash you need on closing day. Closing costs of about 2% to 5% of the loan come on top. Here is the total for the same $350,000 example home used above, based on each loan amount.

DownCash downLoanClosing costs (2% to 5% of loan)Total cash to close
3%$10,500$339,500$6,790 to $16,975$17,290 to $27,475
5%$17,500$332,500$6,650 to $16,625$24,150 to $34,125
10%$35,000$315,000$6,300 to $15,750$41,300 to $50,750
20%$70,000$280,000$5,600 to $14,000$75,600 to $84,000
Worked example from this guide’s figures. Seller credits or assistance programs can lower your cash to close.

Estimate your own number with our closing cost calculator, and remember to keep 3 to 6 months of expenses in savings after closing.

How long will it take to save?

A common question behind how much down payment for a house is really “how long until I can buy?” This table shows months to save for the $350,000 example at different monthly savings rates (before any interest or assistance).

Monthly savings5% down ($17,500)10% down ($35,000)20% down ($70,000)
$50035 months70 months140 months
$1,000About 18 months35 months70 months
$1,500About 12 monthsAbout 24 monthsAbout 47 months
$2,000About 9 monthsAbout 18 months35 months
Simple division. Add closing costs to your target.

The gap is why many buyers choose 3% to 10% down: waiting years to reach 20% can mean paying more rent in the meantime, while home prices and rates keep moving.

Is the extra cash for 20% worth it? A worked example

From the monthly table above, going from 5% to 20% down on the $350,000 home costs about $52,500 more upfront and lowers principal, interest and PMI from about $2,268 to $1,770, a savings of roughly $498 a month. Simple math says the extra cash pays for itself in monthly savings after about 105 months, or close to 9 years, before considering interest you could earn elsewhere.

PMI on a conventional loan does not last forever. Under federal rules, you can usually ask to cancel it once you reach 20% equity, and it ends automatically at 22% equity based on the original schedule. FHA mortgage insurance works differently; see what is PMI and FHA vs conventional for details.

How to decide how much to put down

  1. Start with your emergency fund. Set aside 3 to 6 months of expenses that you will not touch.
  2. Budget closing and moving costs. Add 2% to 5% of the loan plus moving and basic furniture.
  3. Check your loan minimum. 3% to 5% conventional, 3.5% FHA, 0% VA or USDA if eligible.
  4. Compare monthly payments. Run each down payment through our mortgage payment calculator.
  5. Look for help. Down payment assistance and gift funds can raise your down payment without draining savings.
  6. Pick the amount that keeps the payment comfortable and still leaves cash for repairs after move-in.

How much down payment for a house by buyer type

First-time buyer with modest savings

A 3% conventional or 3.5% FHA loan gets you in sooner. On a $250,000 home that is $7,500 to $8,750 down, plus closing costs. Pair it with assistance programs if you qualify.

Veteran or service member

An eligible VA loan allows 0% down, so savings can go toward closing costs, moving and an emergency fund.

Move-up buyer with home equity

Equity from your current home often makes 20% realistic, which removes PMI on a conventional loan and lowers the payment.

Buyer in a high-cost area

Loans above conforming limits are jumbo loans, which often need 10% to 20% down. Check limits for your county before you set a savings goal.

In every case, the question of how much down payment for a house comes back to the same balance: enough to meet the loan minimum and keep the payment comfortable, without draining your savings.

Common down payment mistakes

  • Emptying savings to reach 20% and having nothing left for repairs or emergencies.
  • Forgetting closing costs, which can add thousands of dollars on top of the down payment.
  • Moving large sums between accounts right before applying without a paper trail; lenders want to see where money came from.
  • Taking on a new car loan while saving, which raises your debt-to-income ratio.
  • Not asking about assistance programs; see first-time home buyer programs.

There is no single answer to how much down payment for a house is right. The best amount is the one that meets your loan minimum, keeps your monthly payment comfortable and leaves a healthy emergency fund. Use the tables in this guide to test a few amounts before you talk to a lender.

Helpful resources: For more on how much down payment for a house, see the Consumer Financial Protection Bureau and U.S. Department of Housing and Urban Development.

How much down payment for a house: frequently asked questions

How much down payment do I need for a house?

It depends on the loan. Conventional loans can require as little as 3% to 5%, FHA loans 3.5% with a 580+ credit score, and VA and USDA loans 0% for eligible buyers. You do not need 20%.

Is it better to put 20% down?

20% down avoids PMI on a conventional loan and lowers your payment, but it is not required. Many buyers put down less and keep more savings.

How much is 10% down on a $350,000 house?

$35,000. Closing costs of roughly $6,300 to $15,750 would be extra.

Can I use gift money for a down payment?

Yes, most loan types allow gift funds from family, usually with a signed gift letter and documentation of the transfer.

How much down payment for a $300,000 house?

At common minimums, 3% is $9,000, 3.5% is $10,500, 5% is $15,000, 10% is $30,000 and 20% is $60,000. Closing costs of about 2% to 5% of the loan are extra. See our mortgage on a $300k house guide for payments.

What is the minimum down payment for a first-time home buyer?

Many first-time buyers can put down 3% with a conventional first-time buyer program or 3.5% with an FHA loan and a 580+ credit score. Eligible VA and USDA borrowers may put 0% down.

Sources: Consumer Financial Protection Bureau, HUD, Fannie Mae, U.S. Department of Veterans Affairs. Prices are national planning ranges, not quotes. See how we research costs.

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