The short answers. You do not need 20%. FHA: at least 3.5% (with a credit score of 580 or more). Conventional (Fannie Mae): 3% for a first-time buyer or a HomeReady loan, and 5% otherwise, for a fixed-rate one-unit home you will live in. VA and USDA: no down payment for eligible borrowers. A down payment of 20% avoids private mortgage insurance on a conventional loan, and the down payment is separate from closing costs. Try your own price in the tool below.
The minimum down payment by loan type
Each program publishes its own rule. This table gives the minimum for a one-unit home you will live in. It is the least a program allows, not what every lender will accept, and lenders can require more.
| Loan | Minimum down payment | Conditions in the rulebook |
|---|---|---|
| Conventional, first-time buyer (Fannie Mae) | 3% (97% loan-to-value) | Fixed-rate loan up to 30 years, one-unit home all borrowers will live in, approved through Fannie Mae's automated system. At least one borrower must be a first-time buyer, meaning they answer "No" on the loan application to owning a home in the last three years. Homeownership education applies. |
| Conventional, HomeReady (Fannie Mae) | 3% (97% loan-to-value) | Total qualifying income at or below 80% of the area median income. Education is required when every borrower who will live there is a first-time buyer. |
| Conventional, standard (Fannie Mae) | 5% (95% loan-to-value) | For a one-unit home you will live in when the 3% options do not apply, and for a two- to four-unit primary home. Adjustable-rate loans are also capped at 95%. |
| FHA (HUD) | 3.5% (96.5% loan-to-value) | A decision credit score of 580 or more. With a score of 500 to 579, the most an FHA loan can be is 90% of value, so at least 10% down. |
| VA | None | For eligible servicemembers, veterans and families, if the sales price does not exceed the appraised value. Most borrowers pay a funding fee. |
| USDA | None | 100% financing for eligible low- and moderate-income buyers in eligible rural areas, through approved lenders. |
Sources: the Fannie Mae Eligibility Matrix (August 5, 2026), Fannie Mae Selling Guide B2-1.3-01 and Fannie Mae Selling Guide B5-6-01 (HomeReady) for conventional loans; HUD Handbook 4000.1 (FHA) (Update 18, August 12, 2026) for FHA; and the CFPB and USDA for VA and USDA (CFPB: What is a VA loan?; USDA Single Family Housing Guaranteed Loan Program). The minimum credit score for each loan is in our credit score guide. The down payment percentage and the loan-to-value ratio are two sides of the same number: the loan-to-value is 100% minus the down payment percentage when the appraisal matches the price (Fannie Mae uses the lower of the sales price and the appraised value), and the CFPB says lenders use it to decide how much you can borrow, your rate, and whether you need mortgage insurance (CFPB: What is a loan-to-value ratio?).
Other property types need more. For a one-unit second home the Eligibility Matrix's maximum loan-to-value is 90% (10% down), for a one-unit investment property 85% (15% down), and for a two- to four-unit investment property 75% (25% down). A borrower who buys with a Community Seconds loan can have a combined loan-to-value up to 105%, according to the same document.
What your down payment is on your own price
Enter the price and the percentage you are considering. The tool shows the cash, the loan, the payment and which of the minimums above your percentage clears. It is a planning aid: your lender's own requirements and your credit, income and savings decide what you can actually get.
Programs this percentage clears (the minimum only):
The payment excludes property tax, insurance and mortgage insurance. For the full picture use the mortgage calculator.
Down payment by home price
Here are the dollar amounts for the common levels, so you can find your row without a calculator. The 3% and 3.5% columns are the conventional and FHA minimums above.
| Home price | 3% | 3.5% | 5% | 10% | 20% |
|---|---|---|---|---|---|
| $200,000 | $6,000 | $7,000 | $10,000 | $20,000 | $40,000 |
| $250,000 | $7,500 | $8,750 | $12,500 | $25,000 | $50,000 |
| $300,000 | $9,000 | $10,500 | $15,000 | $30,000 | $60,000 |
| $350,000 | $10,500 | $12,250 | $17,500 | $35,000 | $70,000 |
| $400,000 | $12,000 | $14,000 | $20,000 | $40,000 | $80,000 |
| $500,000 | $15,000 | $17,500 | $25,000 | $50,000 | $100,000 |
| $600,000 | $18,000 | $21,000 | $30,000 | $60,000 | $120,000 |
On a $300,000 home, that is $10,500 for FHA's 3.5% and $60,000 for 20%. These amounts are only the down payment. You will also pay closing costs, which the CFPB says sometimes can be substantial. Estimate them with the closing cost calculator, and see how long a mortgage takes to close for when the money is due.
What a bigger down payment does
A bigger down payment means a smaller loan, and the CFPB adds that the larger your down payment, the lower your interest rate is likely to be and the more likely you are to be approved (CFPB: What kind of down payment do I need?). Here is one example home priced at $350,000 with a 30-year fixed loan at a placeholder 6.5%. The rate is not a forecast, and in real life it would differ by down payment and credit.
| Down payment | Cash down | Loan | Principal and interest per month | Interest over 30 years |
|---|---|---|---|---|
| 3.5% | $12,250 | $337,750 | $2,134.81 | $430,782 |
| 5% | $17,500 | $332,500 | $2,101.63 | $424,085 |
| 10% | $35,000 | $315,000 | $1,991.01 | $401,765 |
| 20% | $70,000 | $280,000 | $1,769.79 | $357,125 |
Moving from 3.5% down to 20% down cuts the monthly principal and interest by $365.02. It also needs $57,750 more cash upfront, and on a conventional loan it removes the private mortgage insurance that the CFPB says is usually required below 20% (CFPB: What is private mortgage insurance?). The table leaves out mortgage insurance, so a real payment at 3.5% or 5% down would be higher than shown. FHA loans carry their own insurance: HUD's handbook sets the upfront premium at 175 basis points, or 1.75%, of the base loan, which may be financed into the loan or paid in cash. On the 3.5% example that is $5,911. Test a full payment, with tax and insurance, in the mortgage calculator, and see how mortgage payments work for when PMI ends.
Where the down payment can come from
Savings are the simplest source, but they are not the only one. The CFPB lists several, and the loan rulebooks add conditions (CFPB: Where can I get money for a down payment on a home?):
| Source | What the sources say |
|---|---|
| Gift from family | Fannie Mae lets a one-unit primary residence buyer fund the whole transaction with a gift, even above 80% loan-to-value. A two- to four-unit primary residence or a second home needs 5% from your own funds when the loan-to-value is above 80%. The donor is a relative, or a non-relative with a close familial or mentorship relationship, and cannot be the builder, developer, real estate agent or another interested party. You need a signed gift letter with the amount, the donor's name, address, phone and relationship, and a statement that no repayment is expected (Fannie Mae Selling Guide B3-4.3-04 (personal gifts)). |
| Gift, FHA | Allowed from family, an employer or union, a close friend with a clearly defined interest in you, a charity, or a government program for low- and moderate-income or first-time buyers. Cash on hand is not an acceptable source for the donor's money. The required minimum investment cannot come from the seller or anyone who benefits from the sale (HUD Handbook 4000.1 (FHA)). |
| Down payment assistance | The CFPB says local nonprofit or government organizations sometimes offer a second mortgage on special terms in place of a down payment. Fannie Mae's Community Seconds loans allow a combined loan-to-value up to 105%. Ask a HUD-approved housing counselor and your state's housing finance agency what is available where you live: our down payment assistance guide explains the kinds of help, what each costs you and lists every state's agency. For California, see our guide to CalHFA's programs, and for Texas our TDHCA guide. |
| IRA withdrawal | The IRS lists up to $10,000 used in a qualified first-time home purchase as an exception to the additional 10% early-withdrawal tax (IRS Topic 557: Additional tax on early distributions from traditional and Roth IRAs). Ordinary income tax can still apply, and the CFPB warns that taking principal out means less money growing for retirement. Ask a tax adviser first. |
| Borrowing | The CFPB says you can in some cases borrow the down payment, but it raises your total debt and monthly payments, so consider it carefully. Lenders count the new debt when they check your debt-to-income ratio, and business-account funds get extra checks if you are self-employed (see the self-employed mortgage guide). Test your ratio in the debt-to-income ratio calculator. |
Tell your lender about every source. The CFPB says to advise your lender of your financial particulars, including that you are using one of these options, and for gifts you must be able to prove where the money came from.
Should you put down more?
There is no single right answer, and the sources do not give one. What they do say points to a trade-off. More down means a smaller loan, a likely lower rate, easier approval and no PMI at 20%. Less down keeps more cash in your hands for the costs the CFPB lists, such as closing costs, points, moving and repairs. A practical approach is to price two or three levels with real lenders. The CFPB advises asking how your down payment affects your rate and options, and comparing Loan Estimates, so request them at two different down payments and compare the total cost. Our Loan Estimate guide shows how, and the points guide helps weigh a lower rate against upfront cost. Before you commit, run the numbers in the house affordability calculator to see whether the monthly cost fits your income.
Sources and review
Conventional loans: Fannie Mae Eligibility Matrix (August 5, 2026), Fannie Mae Selling Guide B2-1.3-01, Fannie Mae Selling Guide B5-6-01 (HomeReady) and Fannie Mae Selling Guide B3-4.3-04 (personal gifts). FHA: HUD Handbook 4000.1 (FHA), Update 18 issued August 12, 2026 (minimum required investment, source requirements, gifts and the upfront premium). HUD's site blocks automated downloads, so we read that update from a public web-archive copy of HUD's own PDF; check HUD's site for anything newer. VA, USDA and consumer guidance: CFPB: What is a VA loan?, USDA Single Family Housing Guaranteed Loan Program, CFPB: What kind of down payment do I need?, CFPB: Where can I get money for a down payment on a home?, CFPB: What is a loan-to-value ratio? and CFPB: What is private mortgage insurance?. IRA rule: IRS Topic 557: Additional tax on early distributions from traditional and Roth IRAs. We did not read Freddie Mac's guide, state assistance programs other than California's CalHFA and Texas's TDHCA (covered in our California and Texas guides), or lenders' own requirements, which can be stricter. The example uses a placeholder rate. Rules change, and your lender comes first. Last reviewed September 2026. See our methodology. This is general information, not financial or tax advice.