Down Payment & Assistance
How much do I need for a down payment?
The short answer
You do not need 20% down to buy a home. Conventional loans can start at 3% down and FHA loans at 3.5%, while VA and USDA loans can require nothing down for eligible buyers. Putting down less than 20% on a conventional loan means paying private mortgage insurance until you build enough equity, so a smaller down payment lowers your up-front cost but raises your monthly payment.
Key points
- 20% is a common benchmark, not a requirement.
- Conventional loans start near 3% down; FHA near 3.5%.
- Under 20% down usually adds mortgage insurance.
- Assistance programs can help with the down payment.
The trade-off
A larger down payment reduces your loan, monthly payment, and interest paid, and can avoid PMI. A smaller one preserves cash but costs more monthly. There is no single right answer; it depends on your savings and goals.
Put this to work
Sources
Every claim above traces to a public government source.
- ViewT1FHA loans — buying a home
U.S. Department of Housing and Urban Development · Government / primary · 2024
- ViewT1VA-backed home loans
U.S. Department of Veterans Affairs · Government / primary · 2024
- ViewT1Homeowners Protection Act (PMI cancellation)
U.S. Code / CFPB summary · Government / primary · 2024