How Much Down Payment Do You Need?

Real minimums by program, and the trade-off between a smaller down payment and monthly cost.

The short answer

You do not need 20%. Conventional loans start at 3% down, FHA at 3.5%, and VA and USDA can go to zero for eligible buyers. Putting down less than 20% on a conventional loan means mortgage insurance, which can be removed once you reach 20% equity. The right amount balances your cash reserves against your monthly payment.

Key things to know

  • Conventional: as little as 3% down
  • FHA: 3.5% down with a 580+ score
  • VA: 0% down for eligible veterans and service members
  • Under 20% down means mortgage insurance on conventional loans
  • Gift funds are allowed on most programs

    • Read the full guide

    How Much Down Payment Do You Really Need?

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