What different down-payment amounts change
A larger down payment reduces the amount borrowed and may reduce the monthly payment and total interest. It can also affect pricing and mortgage insurance. But using every dollar of savings for the down payment can leave too little for closing costs, moving, repairs, and emergencies.
Is 20% down required?
No. Some conventional programs allow eligible borrowers to put down less than 20%, and government-backed programs have their own eligibility and down-payment rules. A down payment below 20% on many conventional loans generally means private mortgage insurance, but exact requirements depend on the loan and lender.
Compare 3%, 5%, 10%, and 20% scenarios
For a $350,000 purchase, the down payments would be $10,500 at 3%, $17,500 at 5%, $35,000 at 10%, and $70,000 at 20%. These figures are simple purchase-price percentages, not a complete cash-to-close estimate. Add closing costs, prepaid items, and reserves.
Consider the loan program
FHA loans can permit a 3.5% minimum required investment for eligible borrowers who meet applicable requirements. VA and USDA programs may offer no-down-payment options to eligible borrowers and properties, subject to program rules. Conventional low-down-payment options also have borrower and property criteria.
Protect your cash after closing
Before choosing a down payment, estimate closing costs, prepaid taxes and insurance, moving costs, immediate repairs, and an emergency fund. Ask the lender to show side-by-side Loan Estimates for more than one down-payment amount.
Useful tools and related guides
Frequently asked questions
Can I buy a house with 3% down?
Some conventional programs allow eligible borrowers to put down as little as 3%. Availability depends on the program, borrower, property, occupancy, and lender requirements.
Is 20% down always better?
Not necessarily. It may reduce borrowing and mortgage insurance costs, but it can be unwise if it uses all available savings or delays a purchase that otherwise fits your finances.
Can down-payment assistance help?
State, local, employer, and nonprofit programs may offer grants, forgivable loans, or deferred-payment assistance. Eligibility, funding, and repayment terms vary by program.
Official resources
Use these primary sources to confirm current program rules and disclosures. Loan terms and eligibility can vary.
This page is general educational information, not a mortgage offer, legal advice, tax advice, or a commitment to lend. Program requirements, lender overlays, rates, fees, and local taxes can change. Confirm details with the relevant agency, local authority, and licensed mortgage professional.