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Mortgage Answers / Down Payment
How Much Money Do I Need for a Down Payment?
The answer may be less than you think.
Explore different down-payment amounts and loan options. See what a path to homeownership could look like for you.
- Low down payment options
- FHA, VA & conventional
- Down payment assistance
Start here
The Short Answer
For many conventional loans, down payments can start at 3% of the purchase price. FHA loans generally require at least 3.5% for eligible borrowers, while eligible VA borrowers may purchase with 0% down. The amount you need depends on the loan program, property, and your financial situation.
Down payment assistance may help reduce upfront cash needs. A down payment is only part of your cash to close. Budget separately for closing costs, prepaid expenses, and any required reserves.
See Your Numbers
Adjust the home price to see estimated down payments for common loan options.
Down payment examples only, not full cash-to-close estimates. Excludes closing costs, prepaid taxes and insurance, mortgage insurance, applicable funding fees, and other expenses. Eligibility and loan limits apply. Assistance is not guaranteed.
Find your starting point
A down payment may be more within reach.
Compare common down payment options, then explore the details that fit your situation.
Conventional Loans
3% downAs little as 3% down for qualified buyers. Mortgage insurance is generally required below 20% down.
For qualified buyers. Mortgage insurance generally applies below 20% down.
FHA Loans
3.5% downAs low as 3.5% down for eligible borrowers. Credit requirements and mortgage insurance apply.
For eligible borrowers. Credit requirements and mortgage insurance apply.
Explore optionsVA Loans
0% down0% down for eligible borrowers. Entitlement, appraisal, and lender approval matter; a funding fee may apply.
For eligible borrowers. Entitlement, approval and possible funding fees apply.
Down Payment Assistance
AssistanceGrants or second loans may help with upfront costs. Eligibility, availability, and repayment terms vary.
Grants or second loans may help. Eligibility, repayment terms and availability vary.
Explore optionsFactors That Affect Your Down Payment
- Loan program: Each program sets its own minimum and eligibility rules.
- Credit profile: Your credit history can affect qualifying options.
- Home purchase price: A percentage down payment grows with the price.
- Available savings: Leave room for moving, repairs, and an emergency cushion.
- Assistance programs: Availability and terms depend on your situation.
- Seller contributions: Where permitted, these can offset allowable closing costs; they generally do not replace your required down payment.
Plan for the full picture
Down Payment vs. Closing Costs
The amount you need depends on the loan program, property, and your financial situation. Down payment assistance may help reduce upfront cash needs. A down payment is only part of your cash to close. Budget separately for closing costs, prepaid expenses, and any required reserves.
Your down payment is the portion of the purchase price you pay upfront. Closing costs cover expenses such as lender, title, and appraisal fees. Prepaid taxes and insurance can add to the amount needed.
For a $400,000 home, 3% down is $12,000. That does not mean $12,000 is your total cash to close. Your Loan Estimate and Closing Disclosure show how the down payment, fees, deposits, and credits fit together.
Frequently Asked Questions
Do I need 20% down to buy a home?
No. Some eligible buyers can use a 3% conventional, 3.5% FHA, or 0% VA option. A larger down payment may reduce borrowing costs, but it is not required for every loan.
Does 0% down mean no money at closing?
No. Closing costs, prepaid expenses, and applicable fees can still be due. Ask for an estimate of total cash to close, including any approved credits.
Can assistance cover my entire down payment?
It depends on the program and your eligibility. Assistance may cover part of your upfront costs and may need to be repaid. Do not assume an amount until the program and lender confirm it.
Can I use gift money for my down payment?
Many programs allow eligible gifts with documentation. Acceptable donors, documentation, and any required borrower contribution depend on the loan program.