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Down Payments Explained

Your down payment is the cash you put toward the price up front. The amount you need depends on the loan type, and more down usually means a lower payment.

Minimums by loan type

• VA and USDA: 0% for eligible buyers.
• Conventional: as low as 3%.
• FHA: 3.5% with qualifying credit.
• 20% down: avoids monthly PMI on conventional loans.

More down vs less down

A larger down payment lowers your loan amount, your payment, and your mortgage insurance, but ties up cash. A smaller down payment keeps cash available but raises the payment and may add mortgage insurance. There is no single right answer.

Down payment assistance

Many state and local programs offer grants or second loans to help with the down payment for eligible buyers. A loan officer can point you to programs you may qualify for.

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Frequently asked questions

How much down payment do I need?

From 0% with VA or USDA, to 3% conventional or 3.5% FHA, up to 20% to skip PMI.

Is 20% down required?

No. It avoids PMI on conventional loans, but many buyers put down far less.

What is down payment assistance?

State and local programs that provide grants or second loans to help eligible buyers cover the down payment.