How Much Down Payment Do You Need for a Home?

You’ve been picturing it — your own place, your rules, maybe even a dog in the backyard. But when talk about the down payment starts, that dream of homeownership might feel a few steps farther away.  

You’ll typically need at least a little money down to buy a home, but it doesn’t always need to be 20% of the purchase price. In fact, you may be able to buy a home with as little as 3% down, and some loans to buy a home require no money down at all. How much a down payment for a home should be depends on the type of loan you choose, your credit score, and your financial goals. Here’s what you need to know to determine the right down payment for you. 

Key takeaways

• The minimum down payment you need for a home varies depending on the type of mortgage, your credit history, and your income. 
• You may be able to get a conventional mortgage with as little as 3% down, while the minimum for an FHA home loan is 3.5%. 
• Consider putting down more than the minimum, as it can help you qualify for a lower mortgage rate and save money on interest. 

Minimum down payment requirements by mortgage type

Different types of home loans have different down payment requirements. See the table below for the minimum down payment amounts on different mortgage options:  

Loan type	Minimum down payment
Conventional	3%
FHA	3.5% (10% with credit score of 500-580)
VA	$0
USDA	$0
Jumbo	20%
Second home, vacation home, investment property	Varies, usually 20%

Zero-down loans 

VA loans and USDA loans are two mortgage options that allow $0 down payments, if you qualify. These loans also have flexible credit requirements, so if you’re eligible, they’re worth a serious look. 

To qualify for a VA loan, which is backed by the Department of Veterans Affairs, you’ll need to be a veteran, a surviving spouse, or an active-duty military service member. There are specific guidelines depending on the nature, time period, and length of your service, so check in with the VA about your eligibility for this benefit. 

USDA loan eligibility depends on where the property is located and whether your income meets certain guidelines. This loan program is for lower-income buyers in designated rural areas. 

Conventional loan down payments 

Conventional fixed-rate loans typically allow for down payments of just 3%, provided your income is stable and your credit history is solid (among other factors).  

If you’re struggling to save up a down payment, there are two loan programs worth checking out: HomeReady® and Home Possible®. Both are designed to help first-time home buyers and those with low-to-moderate income afford a home. They have flexible credit requirements and low down payment options, and both allow you to use rental income or a co-borrower to help qualify for the loan.  

FHA loan down payments 

FHA loans are backed by the Federal Housing Administration, which gives this mortgage type more flexibility for those with lower credit scores. You can be eligible for a down payment of 3.5% if you have a credit score of at least 580. If you have a credit score below 580 and want an FHA loan, you’ll need to compensate with a down payment of at least 10%.  

FHA loans are designed to help first-time home buyers, people with lower credit scores, and those without a large down payment be able to buy a home. 

Jumbo loan down payments 

Jumbo loans are mortgages for amounts higher than the Federal Housing Finance Agency (FHFA) allows for what it considers to be “conforming” loans. The amount varies depending on where you live, but in 2025 a jumbo loan is for amounts above $806,500 in most areas.  

Because the loan amounts are larger, lenders typically require a higher down payment — usually 20%.  

Other factors that influence your down payment amount 

More goes into deciding how much a down payment for a home should be than just the loan type. You’ll have to consider other factors, too, such as: 

• Your credit score: A lower credit score can make it tougher to qualify for a mortgage, and it can result in a higher interest rate. Putting more money down could counteract this. 
• Your existing debt: Lenders don’t like to see a high debt-to-income ratio (DTI), because it means you have less wiggle room in your budget for making a mortgage payment. Increasing your down payment could increase your chances of approval. 
• Your income: If your income doesn’t support the monthly mortgage payment you need for the home you want, a larger down payment could help. Putting more down decreases the amount you need to borrow and reduces your monthly payments.  
• Where you’re buying: Areas with higher home prices mean the down payments are naturally higher, too. 

What’s the average down payment for a home? 

How much your down payment needs to be can vary depending on whether it’s your first home or not. First-time buyers usually put down less, and repeat buyers often have funds from the sale of their previous home to use as a down payment.  

The average down payment amount is 9% for first-time home buyers and 23% for repeat buyers, according to a report by the National Association of REALTORS®. For a $400,000 home, a 9% down payment would be $36,000.  

First-time home buyers can supplement their savings for a down payment by using a down payment assistance program or by asking friends and family for gift funds to help. 

Benefits of a larger down payment 

While a smaller down payment is easier to save up for, a larger down payment has plenty of financial benefits. Putting down more than the minimum helps you: 

• Lower your monthly payments: The more you put down on a home, the less you need to borrow. When you borrow less, it costs less each month to pay back the loan. 
• Reduce your interest rate: Because a bigger down payment means less risk for the lender, you may be able to score a lower interest rate. That can save you money each month as well as lowering the overall amount of interest you’ll pay. 
• Avoid PMI: Lenders require private mortgage insurance (PMI) on conventional mortgages if you put down less than 20%. PMI is usually between $30 to $70 per month for every $100,000 borrowed. For example, a $400,000 home may require $120 to $280 in monthly PMI. A higher down payment could help you avoid this monthly cost 

How much should you put down on your home? 

There’s no one-size-fits-all answer to how much you should put down on a home. Instead, determine the down payment amount that fits your budget and your financial goals. Try a mortgage calculator to see how different down payment options affect your monthly payment and overall interest costs.  

For a more personalized estimate, get preapproved for a mortgage. AmeriSave has competitive rates, quick approvals, and an online process that helps you understand exactly how much home you can afford. Get started today and see what your new mortgage could look like.  

Frequently asked questions 

Below are a few frequently asked questions about how much of a down payment you need to buy a home. 

What percentage should a down payment be for a home?

Although you’ve likely heard 20% recommended as a down payment, you could put down as low as 3% or $0 with certain loan types. The size of your down payment can influence your interest rate and loan terms, so it can help if you save up for a larger amount. 

Can I buy a home with less than a 20% down payment?   

FHA, VA, and USDA loans let you put down 3.5% or even less if you’re eligible. Some lenders offer mortgages with 3% down, or even less with certain loan programs or promotions. 

Does a larger down payment benefit me when buying a home? 

Yes, a larger down payment can benefit you financially when buying a home. It could help you qualify for a lower interest rate, which would decrease your overall borrowing costs and help reduce your monthly payments. It can also help you avoid PMI. 

What is the minimum down payment required for a conventional loan?  

Typically, the minimum down payment for a conventional loan is 3%, although this figure varies by lender. Some lenders require a higher down payment if your income or credit score are lower.