Ask ten people how much you need for a house down payment, and most will say "20%." That number is outdated. In 2026, the actual minimum ranges from 0% to 20% depending on your loan type, credit score, and the property you're buying.
The average first-time homebuyer in the US puts down about 6-7%. And if you qualify for a VA or USDA loan, you might not need any down payment at all.
Let's break down exactly what you need — no guesswork, no jargon.
Want the quick math? Plug your numbers into our free Mortgage Calculator to see how different down payments change your monthly payment.
Down Payment Requirements by Loan Type
Your down payment depends primarily on the type of mortgage you choose. Here's a comparison of every major loan program available in 2026:
| Loan Type | Minimum Down Payment | Credit Score Needed | PMI Required? | Best For |
|---|---|---|---|---|
| Conventional | 3% | 620+ | Yes, if under 20% | Buyers with good credit |
| FHA | 3.5% | 580+ (10% if 500-579) | Yes (MIP) | First-time buyers, lower credit |
| VA | 0% | No minimum (lenders use 620+) | No | Veterans, active military |
| USDA | 0% | 640+ (flexible) | Guarantee fee | Rural/suburban buyers |
| Jumbo | 10-20% | 700+ | Varies | Luxury/high-cost properties |
Conventional Loans: The 3% to 20% Spectrum
Conventional mortgages are the most common type, accounting for roughly 70% of all mortgages. Here's how the down payment works:
- 3% down — Available through programs like Fannie Mae's HomeReady or Freddie Mac's Home Possible. You'll need a credit score of 620+ and will pay Private Mortgage Insurance (PMI) until you hit 20% equity.
- 5-10% down — Still requires PMI but lowers your monthly payment compared to 3%.
- 20% down — Eliminates PMI entirely and often qualifies you for the best interest rates.
What Does This Look Like in Dollar Amounts?
| Home Price | 3% Down | 5% Down | 10% Down | 20% Down |
|---|---|---|---|---|
| $250,000 | $7,500 | $12,500 | $25,000 | $50,000 |
| $350,000 | $10,500 | $17,500 | $35,000 | $70,000 |
| $450,000 | $13,500 | $22,500 | $45,000 | $90,000 |
| $600,000 | $18,000 | $30,000 | $60,000 | $120,000 |
Use our Mortgage Calculator to see how these amounts affect your monthly payment and total interest paid.
FHA Loans: 3.5% Down (or 10%)
FHA loans are backed by the Federal Housing Administration and are designed for buyers who don't qualify for conventional financing:
- Credit score 580+ → 3.5% minimum down payment
- Credit score 500-579 → 10% minimum down payment
The trade-off? FHA loans come with Mortgage Insurance Premium (MIP) — an upfront fee of 1.75% of the loan amount plus an annual premium of 0.55% that lasts the life of the loan (unless you refinance into a conventional loan later).
When FHA makes sense: If your credit score is between 580-660 and you have limited savings, FHA is often the fastest path to homeownership.
VA Loans: $0 Down for Veterans
If you're an eligible veteran, active-duty service member, or surviving spouse, VA loans are arguably the best mortgage product available:
- Zero down payment required
- No PMI ever
- Competitive interest rates (often 0.25-0.5% lower than conventional)
- A one-time VA funding fee (1.25-3.3% depending on usage and down payment) that can be rolled into the loan
While you can buy with $0 down, making even a small down payment reduces the funding fee and lowers your monthly payment.
USDA Loans: $0 Down in Rural/Suburban Areas
USDA loans offer 100% financing — no down payment required — for buyers in eligible rural and suburban areas. You'd be surprised by what qualifies: many areas just outside major cities are USDA-eligible.
- Income limits — Your household income must be at or below 115% of the area's median income.
- Location requirement — Check the USDA eligibility map to see if your target area qualifies.
- Guarantee fee — 1% upfront + 0.35% annually (lower than FHA's MIP).
The PMI Question: Is Paying It Worth It?
Private Mortgage Insurance protects the lender (not you) if you default. On a conventional loan, you'll pay PMI until your equity reaches 20%. Here's the real cost:
| Down Payment | Estimated Monthly PMI | Years Until PMI Drops Off |
|---|---|---|
| 3% ($350K home) | $120-180/mo | ~8-10 years |
| 5% ($350K home) | $100-150/mo | ~7-9 years |
| 10% ($350K home) | $70-110/mo | ~4-6 years |
| 15% ($350K home) | $40-60/mo | ~2-3 years |
The math: If PMI costs $150/mo and you'd need 5 more years to save up to 20%, that's $9,000 in PMI vs. potentially $50,000+ in home equity gains in a rising market. For most first-time buyers, paying PMI and buying sooner is the smarter financial move.
How to Save for a Down Payment Faster
If you're still building your down payment fund, here are proven strategies:
- Open a high-yield savings account (HYSA) — Current rates in 2026 range from 4.0-4.5% APY. On $20,000, that's $800-900 in annual interest. Compare with our Savings Calculator.
- Automate transfers — Set up automatic weekly transfers from checking to your down payment fund. Even $200/week adds up to $10,400/year.
- Use the 50/30/20 rule — Allocate 20% of take-home pay directly to savings. Read our complete 50/30/20 guide for details.
- Down payment assistance programs — Over 2,400 city, county, and state programs exist. Many offer grants (free money) or forgivable loans. Check DownPaymentResource.com.
- Consider CD laddering — Lock portions of your savings in 3-month, 6-month, and 12-month CDs for higher guaranteed returns while maintaining some liquidity.
20% Down: Is It Still the Gold Standard?
Putting 20% down has real advantages — but it's not always the best strategy.
Pros of 20% Down
- No PMI (saves $80-200/month)
- Lower monthly payments
- Better interest rates
- Stronger offer in competitive markets
- More equity protection if home values dip
When Less Than 20% Makes More Sense
- Home prices are rising faster than you can save
- Current mortgage rates are low and may increase
- You qualify for VA or USDA (0% down, no PMI)
- You'd drain your emergency fund to hit 20%
- You're paying rent that exceeds what your mortgage would be
Bottom line: Don't let the 20% myth keep you renting for years longer than necessary. Run the numbers, and if buying with 5-10% down makes financial sense, do it.
FAQ
What's the minimum down payment for a first-time homebuyer?
As low as 0% with a VA or USDA loan, or 3% with a conventional loan, or 3.5% with an FHA loan. Most first-time buyers put down between 3-7% and use PMI loans while building equity.
Is a 5% down payment enough?
Yes. A 5% down payment is accepted on conventional and FHA loans. You'll pay PMI, but that cost is typically $100-150/month on a median-priced home — far less than continuing to rent while saving more.
How much is a down payment on a $300,000 house?
It depends on your loan type: $0 (VA/USDA), $9,000 (3% conventional), $10,500 (3.5% FHA), or $60,000 (20% conventional). Use our Mortgage Calculator to see exactly how each option affects your monthly payment.
Do I need 20% down to buy a house?
No. The 20% requirement is a myth. While 20% eliminates PMI and gives you better rates, the vast majority of homebuyers put down less. Programs exist for 0%, 3%, and 3.5% down payments depending on your eligibility.
What is PMI and can I avoid it?
Private Mortgage Insurance is required on conventional loans with less than 20% down. It protects the lender, not you. You can avoid PMI by: putting 20% down, choosing a VA loan (no PMI ever), or using a lender-paid PMI option (which typically means a slightly higher interest rate).
Ready to run the numbers? Use our free Mortgage Calculator to see exactly how your down payment affects your monthly payment, total interest, and how soon you can drop PMI.
This article is for educational purposes only and does not constitute financial advice. Consult a licensed mortgage professional for guidance specific to your situation.