Mortgage CalculatorHow Much Down Payment Do You Need for a House?
The minimum down payment depends on the loan type. Putting down 20% is the usual target because it avoids PMI on conventional loans.
Minimum down payments by loan type
| Loan type | Typical minimum down |
|---|---|
| Conventional (first-time buyers) | 3% |
| FHA | 3.5% with a credit score of 580 or higher |
| VA (eligible veterans) | 0% |
| USDA (eligible rural areas) | 0% |
Lower minimums usually mean PMI or mortgage insurance premiums, so the monthly payment can be higher even with less cash up front.
Why 20% is the common target
On a conventional loan, 20% down means you don't pay PMI. On a $400,000 home, that's $80,000 down. Less down means a larger loan, more interest, and an added insurance cost until your balance falls to 78% to 80% of the home's value.
Closing costs are separate from the down payment and usually run 2% to 5% of the loan amount.