If you’re saving for a home and asking, “How much is a down payment on a house?” the short answer is that it depends more on the loan type than the home price. For a home you’ll live in, the minimum down payment is 0% for a VA or USDA loan, 3% to 5% for a conventional loan, and 3.5% for an FHA loan.
On a $430,000 home, the national median existing-home price, that works out to anywhere from $0 to $21,500 down. Your down payment also determines whether you pay mortgage insurance, how long you pay it, and how much cash you keep after closing.
Key Takeaways
- The minimum down payment on a house you’ll live in is 0% with a VA or USDA loan, 3.5% with FHA at a 580 or higher credit score, 3% on a conventional loan for first-time buyers or borrowers who qualify for Fannie Mae’s HomeReady program, and 5% on a standard conventional loan.
- In NAR’s 2025 Profile of Home Buyers and Sellers, covering purchases from July 2024 to June 2025, the median down payment was 10% for first-time buyers and 23% for repeat buyers.
- On a $430,000 home, 3% down is $12,900, 10% down is $43,000, and 20% down is $86,000.
- On a $430,000 conventional purchase with a 740 to 759 credit score, private mortgage insurance is about $2,290 a year at 3% down, about $1,120 a year at 10% down, and not required at 20% down, based on MGIC’s rate card.
- On an FHA loan, putting at least 10% down eliminates the annual mortgage insurance premium after 11 years, while anything less than 10% down keeps monthly Mortgage Insurance for the life of the loan.
How Much Is a Down Payment on a House?
Each loan program sets its own minimum down payment, and the home price only changes the dollar amount. A $300,000 home and a $500,000 home financed with FHA both require at least 3.5% down.
Minimum Down Payment on a House by Loan Type
| Loan type | Minimum down | On a $430,000 home | Who qualifies | Mortgage insurance |
|---|---|---|---|---|
| VA | 0% | $0 | Eligible veterans, service members, and some surviving spouses, when the price is at or below appraised value | No monthly mortgage insurance; one-time VA funding fee unless exempt |
| USDA | 0% | $0 | Homes in eligible rural areas, household income up to 115% of the area median | Upfront and annual guarantee fees |
| Conventional, 97% financing | 3% | $12,900 | At least one first-time buyer, or a HomeReady borrower (income limits apply); one-unit home, fixed rate | PMI, removable later |
| FHA | 3.5% | $15,050 | Credit score of 580 or higher | Upfront and annual mortgage insurance premium |
| Conventional, standard | 5% | $21,500 | Buyers who don't use a 3% option | PMI, removable later |
A few details move these minimums
- FHA loans require 3.5% down at a credit score of 580 or higher and 10% at a score between 500 and 579, according to HUD.
- The 3% conventional option covers one-unit homes with a fixed-rate loan, and the loan can’t be larger than $832,750 in 2026, the standard conforming loan limit for a one-unit home set by the Federal Housing Finance Agency, even in counties where the limit is higher.
- VA loans require no down payment as long as the sales price isn’t higher than the home’s appraised value, according to the Department of Veterans Affairs.
- USDA guaranteed loans offer 100% financing in eligible rural areas.
Dollar amounts scale with price, and we break out the down payment on a $300K house and a $500K house in separate guides.
When the Down Payment Minimum Is Higher
Buying a two- to four-unit home, a second home, or an investment property raises the minimum down payment. On a conventional loan, Fannie Mae’s eligibility matrix dated August 5, 2026 sets these minimums for a fixed-rate purchase:
- Two- to four-unit home you’ll live in: 5% down
- Second home: 10% down
- One-unit investment property: 15% down
- Two- to four-unit investment property: 25% down
Loans above your county’s conforming loan limit, the largest loan Fannie Mae and Freddie Mac will buy, are jumbo loans. Each jumbo program sets its own minimum down payment, so requirements vary from one jumbo loan to the next.
What Is the Average Down Payment on a House?
NAR reports the average down payment on a house as a median, and that median is well above the minimum. NAR’s 2025 Profile of Home Buyers and Sellers, which surveyed buyers who purchased between July 2024 and June 2025, put the median down payment at 10% for first-time buyers and 23% for repeat buyers. A 10% median does not mean you need 10%. It describes what buyers chose to put down, and a median means half of first-time buyers put down 10% or less.
Repeat buyers can put equity from the home they’re selling toward the next purchase. First-time buyers don’t have that equity, and in the same survey they funded their down payments from personal savings (59%), financial assets such as a 401(k), stocks, or cryptocurrency (26%), and gifts or loans from family and friends (22%). Some used more than one source. If retirement savings are part of your plan, you can use your 401(k) to buy a house through a loan or a withdrawal.
What Is a Good Down Payment on a House?
A good down payment on a house is one that gets you the loan you want and still leaves enough cash for closing costs and the first year of ownership. No single percentage is right for every buyer. The amount you put down changes how much mortgage insurance you pay, how long you pay it, and, on a conventional loan, the pricing adjustments built into your rate or closing costs.
Each end has a trade-off. Cash you put into the house is hard to get back out, because it takes a sale, a refinance, or a home equity line, and each depends on qualifying and on the home’s value at the time. At the low end, with 3% to 5% down, your starting equity can be smaller than the cost of selling, so selling in the first few years may mean bringing cash to closing.
20% Down Removes PMI on a Conventional Loan
Private mortgage insurance (PMI) is required on a conventional loan when you put down less than 20%. It protects the lender, and it’s priced by your credit score and your loan-to-value ratio (LTV), which is the loan amount divided by the home’s value.
MGIC’s rate card prices PMI on a $430,000 purchase at these levels for two credit score ranges:
| Down payment | Cash for the down payment | Loan amount | PMI per year, 740 to 759 score | PMI per year, 680 to 699 score |
|---|---|---|---|---|
| 3% | $12,900 | $417,100 | About $2,290 | About $3,750 |
| 5% | $21,500 | $408,500 | About $1,800 | About $3,020 |
| 10% | $43,000 | $387,000 | About $1,120 | About $1,940 |
| 20% | $86,000 | $344,000 | $0 | $0 |
The same 3% down costs about $1,460 a year more in PMI at a 680 to 699 score than at 740 to 759, so your credit score can move PMI as much as your down payment does. Your PMI rate also depends on your coverage level and other loan details.
Moving from 3% to 20% down removes about $2,290 a year in PMI at the higher score and asks for $73,100 more in cash at closing. It also means borrowing $73,100 less, which lowers your principal and interest payment for the life of the loan. PMI on a conventional loan is also temporary.
Under the Homeowners Protection Act, which covers conventional loans on a primary residence, you can ask your servicer, the company you send payments to, to cancel PMI once your original payment schedule brings your balance to 80% of the home’s original value, or sooner if extra payments get you there. The request must be in writing, and you must be up to date on payments, have a good payment history, have no other loans secured by the home, and show the home hasn’t lost value. PMI ends automatically when your scheduled balance reaches 78% of the original value, as long as you’re up to date on payments, according to the Consumer Financial Protection Bureau.
We’ve long made the case that PMI is often worth paying to buy sooner with less cash tied up. If you’d rather not pay PMI at all, there are ways to avoid PMI with less than 20% down.
10% Down Shortens FHA Mortgage Insurance
FHA loans carry a mortgage insurance premium (MIP) at every down payment. The upfront premium is 1.75% of the base loan (the loan amount before that premium is added), and you can roll it into your loan instead of paying it in cash. You also pay an annual premium in monthly installments.
With less than 10% down, the annual premium lasts for the life of the loan, and putting 10% or more down ends it after 11 years. On a $430,000 home with 3.5% down, the base loan is $414,950. The upfront premium is about $7,260, and the 0.55% annual premium is about $2,280 in the first year, then decreases as the balance falls.
FHA premiums don’t change with your credit score, while Conventional PMI does. At a 680 to 699 score, first-year FHA mortgage insurance is about $1,470 less than PMI on a 3% down conventional loan, although the FHA premium keeps going for the life of the loan at 3.5% down. The Homeowners Protection Act’s cancellation rules don’t apply to FHA loans, so the down payment you choose at closing sets how long you pay FHA mortgage insurance, unless you later refinance out of it.
How Your Down Payment Affects Your Rate or Closing Costs
On a conventional loan, Fannie Mae charges fees called loan-level price adjustments based on your credit score and LTV, and lenders pass them on to you through your rate or closing costs. These fees are set in LTV bands and don’t decrease steadily as your down payment grows.
On a 30-year purchase with a 740 to 759 credit score, Fannie Mae’s price adjustment matrix dated September 9, 2026 charges more at 20% down than at 3% down, and the charge drops once you put down 25% or more. First-time buyers with qualifying income at or below 100% of the area median, or 120% in high-cost areas, have these adjustments waived. Your quote shows the actual effect at the down payment you choose.
How Much Cash Do You Need Besides the Down Payment?
The down payment isn’t the only cash you’ll need at closing. Plan for these as well:
- Closing costs. Lender fees, title and escrow charges, and prepaid property taxes and insurance. Your Loan Estimate, which your lender must send within three business days of your application, lists each one.
- Earnest money. The deposit you make when your offer is accepted is due soon after acceptance, so you need that cash well before closing. It’s credited toward your down payment and closing costs at closing.
- Moving and first-year costs. Repairs, appliances, furniture, and window coverings come out of whatever cash is left after closing.
Sellers can agree to pay part of your closing costs, called a seller concession, and a lender credit can cover some costs in exchange for a higher rate, but neither can pay your down payment.
A gift can. On a conventional loan, Fannie Mae allows a documented gift from a relative or someone with a close family-type relationship toward the down payment on a primary residence or second home. On a one-unit primary residence, the entire down payment can come from a gift, according to Fannie Mae’s Selling Guide. Gifts aren’t allowed on investment properties.
State and local housing agencies also run down payment assistance programs that cover part of the down payment or closing costs.
How Much Should You Put Down on a House?
The right amount depends on the kind of purchase you’re making, because the options and limits change with it.
If You’re a First-Time Buyer
You have the widest range of low-down-payment options. The 3% conventional option, HomeReady, Fannie Mae’s program for borrowers with incomes at or below 80% of the area median, FHA at 3.5%, and down payment assistance are all open to first-time buyers.
Our No PMI Mortgage allows as little as 3% down with no PMI for eligible buyers who, with their spouse or domestic partner, don’t currently own residential property. It requires a minimum credit score of 640, a loan no larger than $832,750, a home in a designated area, and income under 80% of the area median unless the home is in an eligible census tract.
If You’re Selling a Home to Buy the Next One
What you can put toward the next home is your net proceeds, which is the sale price minus your loan payoff, agent commissions, and other selling costs. If your net proceeds cover 20% of the new price, a conventional loan has no PMI.
If you need to buy before your current home sells, a bridge loan can turn your equity into a down payment ahead of the sale. Before choosing any buy-before-you-sell option, ask whether you’ll need to qualify with both mortgage payments and what happens if your current home hasn’t sold by the loan’s deadline.
If You’re Buying a Second Home or Investment Property
Conventional second homes start at 10% down, one-unit investment properties at 15%, and two- to four-unit investment properties at 25%. Anything under 20% down still carries mortgage insurance.
Fannie Mae also requires reserves, which are savings left after closing: two months of housing payments on a second home and six months on an investment property, under its reserve rules. A gift can cover part of a second home down payment but can’t be used on an investment property. If you’d rather qualify on the property’s rent than on your personal income, a DSCR loan starts at 20% down.
How We Help You Decide How Much to Put Down
We work through the down payment question with you before you make an offer, in this order:
- Start with your cash. We add up what you have for the down payment, closing costs, and the savings you want to keep, then work back to a down payment amount.
- Check every program you qualify for. First-time buyer options, HomeReady, our No PMI Mortgage, FHA, and VA can each change the minimum and the mortgage insurance.
- Line up two or three down payment amounts side by side. For each one, you’ll see the loan amount, mortgage insurance, cash to close at current rates, and the estimated monthly payment.
- Document gifts and assistance early. Gift letters and assistance approvals take time, so we line them up before your contract deadlines.
- Issue a pre-approval at the down payment you choose. Your pre-approval letter reflects the amount you plan to put down, so your offer matches your loan.
View mortgage rates for
October 16, 2026
Frequently Asked Questions
How much is a down payment on a house?
A down payment on a house can be as low as 0% with a VA or USDA loan, 3% on a conventional loan for first-time buyers or HomeReady borrowers, 3.5% with an FHA loan, or 5% on a standard conventional loan. On a $430,000 home, that ranges from $0 to $21,500. Putting 20% down, or $86,000 on that price, removes private mortgage insurance on a conventional loan.
What is the minimum down payment on a house?
For a one-unit home you’ll live in, the minimum down payment on a house is 0% with VA or USDA financing and 3% on a conventional loan when at least one borrower is a first-time buyer or the loan is HomeReady. FHA requires 3.5% with a credit score of 580 or higher and 10% with a score of 500 to 579. Second homes start at 10% down and one-unit investment properties at 15% on conventional loans.
What is the average down payment on a house?
The median down payment on a house was 10% for first-time buyers and 23% for repeat buyers, according to the National Association of Realtors’ 2025 Profile of Home Buyers and Sellers, which covers purchases from July 2024 to June 2025. NAR reports the median rather than the average. The first-time buyer median matched the highest level NAR has recorded since 1989.
Do you need 20% down to buy a house?
No. You don’t need a 20% down payment on VA, USDA, FHA, or conventional loans for a home you’ll live in. On a conventional loan, 20% down is the point where private mortgage insurance is no longer required, which is why 20% is often treated as a benchmark.
Can a down payment be a gift?
Yes. Conventional and FHA loan programs allow a documented gift toward the down payment on a primary residence or second home, and on a one-unit primary residence the full down payment can come from a gift. Gift funds aren’t allowed on investment properties financed with a conventional loan.
Can PMI be removed later?
Yes. The Homeowners Protection Act lets you request PMI cancellation in writing once your scheduled balance reaches 80% of the home’s original value, if you’re up to date on payments, have a good payment history, have no other loans secured by the home, and the home hasn’t lost value. PMI ends automatically when the scheduled balance reaches 78%, as long as you’re up to date on payments. These rules don’t cover FHA mortgage insurance, which follows its own timeline.
Does a bigger down payment lower your mortgage rate?
Not always. On a conventional loan, Fannie Mae’s loan-level price adjustments are set in loan-to-value bands, and for a 740 to 759 credit score on a 30-year purchase, they’re higher at 20% down than at 3% down, then drop at 25% down or more. First-time buyers with qualifying income at or below 100% of the area median, or 120% in high-cost areas, have these adjustments waived.
How much down payment do you need for a second home or investment property?
On a conventional loan, a second home requires at least 10% down, a one-unit investment property 15%, and a two- to four-unit investment property 25%, according to Fannie Mae’s eligibility matrix dated August 5, 2026. Fannie Mae also requires two months of reserves on a second home and six months on an investment property, and gift funds can’t be used on an investment property.
Ready to See What Your Down Payment Can Do?
You now know the minimum for each loan, what buyers actually put down, and what 20% changes. A pre-approval analyzes your own savings and credit score to show your loan amount, mortgage insurance, and cash to close.
Get pre-approved with JVM Lending to see your options at two or three down payment amounts.
Still saving? Ask us for that same side-by-side before you start house hunting. Call or text (855) 855-4491 or email hello@jvmlending.com.
NOTE: For all examples in this post, we’re using a $430,000 purchase price, which is the National Association of Realtors (NAR) national median existing-home price for August 2026, rounded to the nearest $10,000. Mortgage insurance estimates come from MGIC’s published borrower-paid monthly rate card for a 30-year fixed loan, as of September 10, 2026, and from HUD’s FHA premium schedule. No interest rate is assumed, and none of these figures is a rate quote or an offer of credit.
