How much down payment do you need?
Probably less than you think. Qualified buyers may put as little as 3% down on a conventional loan or 3.5% on an FHA loan, and eligible VA and USDA borrowers can usually buy with no down payment. HomyLoan helps you compare your options.
- As little as 3% down for qualified buyers
- 0% down for eligible VA and USDA buyers
- Licensed loan officers
The basics
Minimum down payment by loan type
You usually don't need 20% down to buy a home. The minimum depends on the loan program, your credit and the property. Here is what the most common programs generally require.
Conventional
As little as 3%
Qualified buyers may put as little as 3% down. With less than 20% down, private mortgage insurance (PMI) usually applies.
Learn about Conventional loansFHA
3.5% with 580+
FHA allows 3.5% down with a credit score of 580 or higher, or 10% down with scores from 500 to 579.
Learn about FHA loansVA
Usually 0%
Eligible veterans, service members and certain surviving spouses can usually buy with no down payment and no PMI.
Learn about VA loansUSDA
Usually 0%
Eligible buyers in eligible rural and suburban areas who meet household income limits can usually buy with no down payment.
Learn about USDA loansJumbo
Typically more
Jumbo loans are above the conforming loan limit set each year by FHFA and typically require a larger down payment.
Learn about Jumbo loans- Open the calculator
See your numbers
Try different down payments and see how they change your estimated monthly payment.
Minimums are general program guidelines. Lenders may set stricter requirements. Subject to credit approval and program guidelines.
Beyond the minimum
Putting down less than 20%
A smaller down payment can get you into a home sooner. Here is what it usually means and where extra help may come from.
Mortgage insurance (PMI and MIP)
On a conventional loan with less than 20% down, you usually pay private mortgage insurance (PMI), which can be removed once you build enough equity. FHA loans have an upfront mortgage insurance premium and an annual premium paid monthly.
Down payment assistance
State, local and nonprofit programs may help eligible buyers with the down payment or closing costs through grants, forgivable loans or repayable second mortgages.
Gift funds
Many loan programs let you use gift money from an eligible donor, such as a family member, toward your down payment. Lenders usually ask for a signed gift letter and records showing where the money came from.
Closing costs and reserves
Your down payment isn't the only cash you need. Plan for closing costs, and some loans ask for reserves in savings after closing. Your Loan Estimate lists the cash needed to close.
Find the right down payment for you
A licensed loan officer can compare programs across our network of wholesale lenders and show what you may need to bring to closing.
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Down payment FAQs
Usually less than 20%. Conventional loans allow as little as 3% down for qualified buyers, FHA loans allow 3.5% down with a 580+ credit score, and VA and USDA loans usually require no down payment for eligible borrowers.
No. Putting 20% down on a conventional loan lets you avoid private mortgage insurance (PMI), but many buyers put down less and pay mortgage insurance instead.
3.5% of the purchase price with a credit score of 580 or higher. Borrowers with scores from 500 to 579 generally need 10% down.
Often, yes. Many loan programs allow gift funds from eligible donors, such as family members, usually with a signed gift letter and documentation showing where the money came from.
Yes. Down payment assistance programs may help eligible Texas buyers with the down payment or closing costs. Programs such as Arrive Home are one example, and each sets its own income and eligibility rules.
Generally, yes. A larger down payment means a smaller loan amount, and on a conventional loan it can reduce or remove PMI. A mortgage calculator can show how different down payments change your payment.