How Much Down Payment Do You Really Need?
By Colson · Reviewed by Abodemic Editorial Standards · Updated June 1, 2026
You don't need 20% down to buy a home — conventional loans go as low as 3%, FHA 3.5%, and VA/USDA 0%. But 20% avoids PMI and lowers your payment. The right down payment balances getting in sooner against a lower long-term cost.
How much down payment do you need to buy a house?
Less than most people think. Conventional loans go as low as 3% down for first-time buyers, FHA requires 3.5%, and VA and USDA loans allow 0% for eligible borrowers. The 20% figure isn't a requirement — it's the threshold above which you avoid private mortgage insurance.
Is 20% down still worth it?
Putting 20% down removes PMI, lowers your loan, and shrinks your monthly payment — see the effect in the mortgage calculator. But waiting years to save 20% while prices and rents rise can cost more than the PMI would. For many buyers, buying sooner with 5%–10% down and cancelling PMI later is the better math.
What does a smaller down payment cost you?
A smaller down payment means a bigger loan (more interest), PMI until you reach 20% equity, and a higher monthly payment. The trade-off is getting into a home — and starting to build equity — sooner. Model both with the calculator and the closing cost calculator.
Down payment by loan type
- Conventional: 3%–20% (PMI under 20%).
- FHA: 3.5% with a 580+ score.
- VA / USDA: 0% for eligible borrowers.