How Much Should You Put Down on a House?
Last updated September 2026
Quick answer
There's no single right number — options genuinely range from 0% (VA, USDA) to 3%–3.5% (conventional first-time programs, FHA) to 20%+ (avoids PMI on a conventional loan). On the same $400,000 home, the difference between putting 0% and 20% down swings your monthly payment from about $2,516 to $1,970 — but it also swings your upfront cash need from $0 to $80,000. The right number depends on what you qualify for and how much liquidity you want to keep.
Every option, side by side
Same $400,000 home, same 6.25% rate, across every path — pulled directly from the numbers in each loan-type guide:
| Down % | Program | Down payment | Loan amount | Total monthly |
|---|---|---|---|---|
| 0% | VA (eligible, first-time use) | $0 | $408,600* | $2,516 |
| 0% | USDA (eligible area/income) | $0 | $404,000* | $2,604 |
| 3% | Conventional (first-time buyer) | $12,000 | $388,000 | $2,654 |
| 3.5% | FHA | $14,000 | $392,755* | $2,595 |
| 5% | Conventional | $20,000 | $380,000 | $2,555 |
| 10% | Conventional | $40,000 | $360,000 | $2,382 |
| 10% | FHA | $40,000 | $366,300* | $2,406 |
| 20% | Conventional | $80,000 | $320,000 | $1,970 (no PMI) |
*Loan amounts marked with an asterisk include a financed upfront fee (FHA's UFMIP, VA's funding fee, or USDA's guarantee fee), which is how most borrowers on those programs pay it.
How to actually decide
- Start with eligibility, not preference. If you qualify for VA or USDA, $0 down with no monthly mortgage insurance is hard to beat purely on the numbers — check that first.
- Protect your reserves before you protect your rate. Most planners want 3–6 months of expenses sitting untouched after closing — don't drain every dollar to hit a round down payment number.
- Remember closing costs are separate. Budget another 2%–5% of the purchase price on top of your down payment — see Mortgage Closing Costs Explained.
- Weigh the monthly gap against your liquidity. Going from 10% to 20% down on our example saves about $412/month — but it also means finding another $40,000 in cash. Compare that monthly saving against what else that cash could do for you.
The part people miss: rate pricing, not just PMI
On conventional loans, your down payment size can affect your interest rate, not just whether you pay PMI. Lenders use loan-level price adjustments (LLPAs) that step down at certain thresholds — commonly 5%, 10%, 15%, 20%, and 25% down. Ask your lender for the exact rate at each tier before assuming the only benefit of a bigger down payment is dropping PMI.
Things to consider
- Zero down isn't free. VA and USDA loans skip the down payment but still charge an upfront fee (financed into the loan) and, for USDA, an ongoing annual fee — see VA Loans Explained and USDA Loans Explained.
- Waiting to save more has its own cost. If you're weighing a low down payment now against saving longer for 20%, see 20% Down Payment vs. PMI — appreciation can move the target while you save.
- Down payment gifts and assistance programs exist. Many first-time-buyer programs allow gifted funds or down payment assistance — worth researching before assuming you need to save the whole amount yourself.
- A larger down payment reduces your loan size, which compounds. Less principal means less lifetime interest on top of the monthly savings shown above.
Run your own numbers
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The figures on this page are an example loan. MortMetrix builds your full amortization schedule from your real balance, rate and term, then shows exactly what any extra payment does to your payoff date, lifetime interest and equity.
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Frequently asked questions
Is 20% down required to buy a house?
No. Plenty of programs allow far less — including 0% for eligible VA and USDA borrowers, and 3%–3.5% on conventional first-time-buyer programs and FHA loans.
What's the minimum down payment available?
0%, if you qualify for a VA or USDA loan. Among buyers who don't qualify for either, 3% conventional and 3.5% FHA are the lowest common options.
Does a bigger down payment always get a better interest rate?
Not automatically, but on conventional loans it often does — lenders use pricing tiers (loan-level price adjustments) that commonly improve at 5%, 10%, 15%, 20%, and 25% down. Ask your lender for the specific breakpoints.
How much should I keep in reserve after buying?
Most planners recommend 3–6 months of expenses left untouched after closing, on top of your down payment and closing costs.
Do I need cash beyond the down payment itself?
Yes. Closing costs typically run 2%–5% of the purchase price and are separate from your down payment.
Related guides
What Is PMI (Private Mortgage Insurance)?
What PMI costs by down payment size, how it's calculated, and the two ways it legally comes off your loan.
Read moreFHA vs. Conventional Loan: Which Is Right for You?
Five ways to finance the same home compared — and why your credit score, not the headline rate, usually decides which loan wins.
Read more20% Down Payment vs. PMI: Which Costs You Less?
Buying now with PMI versus waiting to save 20% — and why appreciation can move the target faster than you save.
Read moreMortgage Closing Costs Explained: What to Expect
A full line-item breakdown of $12,000 in closing costs, who pays what, and four ways to reduce the total.
Read moreFigures on this page are generated from the same amortization engine that powers the MortMetrix dashboard, using the example loan stated in each table. They are estimates based on a fixed-rate loan at a constant rate and are not your actual loan terms. This is educational information, not financial advice.