How Much Down Payment Do I Need to Buy a House?
Understand down-payment scenarios, cash-to-close, reserves, mortgage insurance, and the monthly payment before you shop.
The right target depends on the loan program, your finances, the property, cash reserves, and how much monthly payment you want to carry.
Common planning scenarios
3% down
May be available for certain qualified conventional borrowers and programs. Eligibility, mortgage insurance, and pricing apply.
3.5% down
May apply to eligible FHA financing. Credit, property, insurance, and program requirements matter.
5% to 10% down
A larger down payment may reduce the loan amount and can change mortgage-insurance or payment considerations.
20% or more
May reduce or avoid mortgage insurance in some situations, but using every dollar for the down payment may leave too little reserve.
Budget beyond the down payment
Plan separately for buyer closing costs, appraisal, inspection, prepaid taxes and insurance, escrow, moving costs, repairs, HOA charges, and cash reserves. A strong plan considers both cash to close and the monthly payment after closing.
These are general examples, not promises that every borrower qualifies. Confirm available programs, income rules, credit requirements, property rules, and pricing with a qualified lender.
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Written or reviewed by Luan Nguyen · Realty Savers · REALTOR® Lic. #02085342 · Mortgage Loan Originator Lic. #1940203