The typical down payment on a house in the United States is 19% of the purchase price, based on 2025 data from the National Association of Realtors. But that median figure masks a wide gap between buyer types: first-time buyers put down a median of 10%, while repeat buyers put down 23%, largely because repeat buyers can roll equity from a previous home into their next purchase. And the actual minimum you need depends entirely on your loan type, which means many buyers get into a home with far less than 19%.
Minimum Down Payments by Loan Type
The 19% median reflects what buyers actually put down, not what lenders require. Minimum requirements vary significantly across the four main mortgage programs.
- Conventional conforming loan: 3% minimum. These are the most common mortgages, backed by Fannie Mae or Freddie Mac. A 3% down payment on a $350,000 home is $10,500.
- FHA loan: 3.5% minimum with a credit score of 580 or higher. If your credit score falls between 500 and 579, you’ll need 10% down. FHA loans are popular with first-time buyers because of their more flexible credit requirements.
- VA loan: No down payment required. Available to eligible veterans, active-duty service members, and certain surviving spouses.
- USDA loan: No down payment required. These are designed for buyers in eligible rural and suburban areas who meet income limits.
So while 19% is the national median, plenty of buyers close with 3% to 5% down, and some pay nothing at all. Your loan program, credit profile, and how much cash you have on hand will shape where you land in that range.
What a Smaller Down Payment Costs You
Putting down less than 20% on a conventional loan triggers private mortgage insurance, commonly called PMI. This protects the lender if you default, and you pay for it as part of your monthly mortgage bill. The average annual cost ranges from 0.46% to 1.50% of the original loan amount, depending heavily on your credit score.
To put that in dollars: on a $300,000 loan, PMI at 0.98% per year adds about $245 to your monthly payment. Buyers with lower credit scores pay more. Someone with a score in the 620 to 639 range can expect PMI around 1.50% of the loan, while a score of 680 to 699 drops that to roughly 0.98%. The good news is PMI isn’t permanent. Once you reach 20% equity in the home, either through payments or appreciation, you can request that your lender cancel it.
FHA loans have their own version of mortgage insurance (called MIP), which works differently. FHA mortgage insurance typically stays on the loan for its full term if you put down less than 10%, meaning you’d need to refinance into a conventional loan to eventually eliminate it.
How Down Payment Size Affects Your Mortgage
Beyond PMI, your down payment size influences your monthly payment, total interest paid, and even the interest rate you’re offered. Lenders generally view larger down payments as lower risk, which can translate to slightly better loan terms.
Here’s a simple comparison on a $400,000 home at a 7% interest rate on a 30-year fixed mortgage. With 5% down ($20,000), you’re borrowing $380,000, and your principal and interest payment is about $2,528 per month, plus PMI. With 20% down ($80,000), you borrow $320,000, your payment drops to about $2,129, and you skip PMI entirely. Over the life of the loan, that difference in borrowed amount means tens of thousands of dollars in additional interest.
That said, waiting years to save up 20% isn’t always the best financial move. Home prices may rise during that time, and you’d be paying rent instead of building equity. Many buyers find that a smaller down payment now, even with PMI, puts them in a better position than waiting.
Down Payment Assistance Programs
If saving for a down payment feels out of reach, thousands of assistance programs exist at the state, county, and city level. These generally fall into a few categories.
Grants are the simplest: you receive money that you never have to repay. Forgivable loans work similarly. They’re technically a second mortgage, but the balance is forgiven if you meet certain conditions, typically staying in the home and keeping your mortgage current for three to 10 years. If you sell or refinance before that period ends, you’ll owe some or all of the money back.
Many programs target first-time buyers, though the definition of “first-time” is often broader than you’d expect. In most programs, anyone who hasn’t owned a home in the past three years qualifies. Income limits apply in nearly all cases, and some programs restrict the purchase price of the home. Your lender or your state’s housing finance agency can point you toward programs you’re eligible for.
How Much Should You Actually Put Down?
The right down payment depends on your savings, your monthly budget, and how quickly you want to be in a home. A few practical guidelines can help you decide.
First, don’t drain your savings completely. You’ll want reserves for closing costs (typically 2% to 5% of the purchase price), moving expenses, and an emergency fund. Putting every dollar into a down payment and then facing an unexpected repair is a stressful way to start homeownership.
Second, run the numbers on PMI. If putting down 10% instead of 20% adds $150 per month in PMI but lets you buy a home two years sooner, that tradeoff may make sense for your situation. Calculate the total cost of PMI over the years you’d carry it, and weigh that against the cost of renting while you save more.
Third, consider your loan options carefully. If you qualify for a VA or USDA loan, a zero-down purchase could be your best path. If you’re using a conventional loan, even moving from 3% to 5% down can improve your rate and lower your PMI. Small increases in your down payment can have outsized effects on your monthly costs.