Qualifying
How much down payment do you need for a house?
Most loan programs require as little as 3%–3.5% down. Conventional loans start at 3%, FHA loans at 3.5%, while VA and USDA loans require no down payment. Putting down 20% eliminates private mortgage insurance (PMI).
The full picture
The down payment you need depends on the loan type you qualify for. There is no single required amount — programs exist for buyers at every savings level.
Minimum down payments by loan type
- Conventional (Fannie Mae / Freddie Mac): As low as 3% for first-time buyers through programs like HomeReady (Fannie Mae) and HomeOne (Freddie Mac). Most lenders require 5%–10% without those programs.
- FHA loan: 3.5% minimum for borrowers with a 580+ credit score. Borrowers with scores between 500–579 may be required to put 10% down.
- VA loan (veterans and active military): 0% down — no down payment required.
- USDA loan (eligible rural areas): 0% down — no down payment required.
Why 20% is the common benchmark
The CFPB notes that if you can't make a 20% down payment, lenders will usually require private mortgage insurance (PMI) — or you may qualify for an FHA, VA, or USDA loan instead. Putting down 20% lets you skip PMI entirely, and generally earns a lower interest rate. That said, tying up a large amount of savings in a down payment also means less cash for emergencies or closing costs.
Larger down payment vs. keeping cash reserves
A bigger down payment reduces your loan balance, monthly payment, and total interest paid. But the CFPB cautions buyers to weigh total acquisition costs — closing costs, moving expenses, and emergency reserves — not just the down payment figure. Depleting savings to hit 20% can leave you exposed if an unexpected repair or income disruption hits shortly after closing.
Key facts
- Conventional loans backed by Fannie Mae allow a 3% down payment for first-time homebuyers through the HomeReady program. Income limits apply (80% of area median income). — Fannie Mae — HomeReady Mortgage
- Freddie Mac's HomeOne program also allows 3% down for first-time buyers with no income limits or geographic restrictions. — Freddie Mac — HomeOne Mortgage
- FHA loans require a minimum 3.5% down payment for borrowers with a credit score of 580 or higher, and may accept down payment funds from gifts, grants, and assistance programs. — HUD — FHA Down Payment FAQ
Key takeaways
- You can buy a home with as little as 3%–3.5% down on conventional and FHA loans, or 0% on VA and USDA loans.
- Putting down less than 20% on a conventional loan typically requires PMI, which adds to your monthly cost.
- A larger down payment usually means a lower rate, smaller monthly payment, and less interest over the life of the loan.
- Don't sacrifice your emergency fund to hit 20% — total cash position after closing matters too.
Published 2026-05-22 · Updated 2026-05-22 · https://clearvaluelending.com/answers/how-much-down-payment-do-you-need-for-a-house