The down payment on a $300,000 house ranges from $0 to $60,000, depending on the type of mortgage you use. Most buyers don’t need to put 20% down. Conventional loans start at 3% ($9,000), FHA loans at 3.5% ($10,500), and VA and USDA loans require no down payment at all.
Down Payment Amounts by Loan Type
Each mortgage program sets its own minimum down payment, and the differences on a $300,000 home are significant:
- Conventional loan (3% down): $9,000. This is the lowest option for buyers using a standard mortgage. You typically need a credit score of at least 620 and strong overall finances to qualify at 3%.
- Conventional loan (5% down): $15,000. A slightly larger down payment that may get you a better interest rate or easier approval.
- FHA loan (3.5% down): $10,500. Available if your credit score is 580 or higher. FHA loans are backed by the Federal Housing Administration and are popular with first-time buyers because they’re more flexible on credit history and debt levels.
- FHA loan (10% down): $30,000. Required if your credit score falls between 500 and 579. Below 500, most lenders won’t approve an FHA loan at all.
- VA loan (0% down): $0. Available to eligible veterans, active-duty service members, and surviving spouses. No down payment and no monthly mortgage insurance.
- USDA loan (0% down): $0. Designed for buyers purchasing in eligible rural and suburban areas who meet income limits. Like VA loans, no down payment is required.
- Conventional loan (20% down): $60,000. This is the threshold where you avoid private mortgage insurance entirely.
Why 20% Down Is Optional, Not Required
The idea that you need $60,000 saved before buying a $300,000 home keeps a lot of people on the sidelines longer than necessary. In practice, most first-time buyers put down far less than 20%. The tradeoff is that when you put down less than 20% on a conventional loan, your lender requires private mortgage insurance (PMI), which protects the lender if you stop making payments.
PMI typically costs between 0.5% and 1.5% of the original loan amount per year. On a $291,000 loan (what you’d owe after putting 3% down on a $300,000 house), that works out to roughly $120 to $365 per month. The exact cost depends on your credit score, down payment size, and loan term. A higher credit score and a larger down payment both push PMI costs lower.
The good news is that PMI isn’t permanent. On a conventional loan, you can request that your lender remove it once your remaining balance drops to 80% of the home’s original value. Your lender is required to cancel it automatically once you reach 78%.
How Your Credit Score Affects the Down Payment
Your credit score directly determines how much you need to bring to the table, especially with FHA loans. A buyer with a 580 credit score qualifies for the 3.5% minimum ($10,500 on a $300,000 home). A buyer with a 540 score needs 10% down ($30,000) for the same house. That’s a $19,500 difference driven entirely by your credit profile.
Conventional loans are less explicit about tiered down payments, but credit scores still matter. Lenders use your score to set your interest rate and determine whether they’ll approve you at the minimum 3% down or want to see more. A score in the mid-700s gives you the most flexibility and the best rates. A score closer to 620 may still qualify, but expect a higher rate and potentially a requirement for a larger down payment.
What You Actually Need Beyond the Down Payment
The down payment is the biggest upfront cost, but it’s not the only one. Closing costs on a $300,000 home typically run 2% to 5% of the purchase price, or $6,000 to $15,000. These cover the appraisal, title search, lender fees, prepaid property taxes, and homeowners insurance.
So if you’re planning to put 3% down ($9,000), your total cash needed at closing could be $15,000 to $24,000. Some of these costs can be negotiated. Sellers sometimes agree to cover a portion of closing costs, and some loan programs allow the seller to contribute up to 3% or 6% of the purchase price toward your costs.
Lenders also want to see that you have some money left after closing. These cash reserves, often one to two months of mortgage payments, show the lender you won’t be completely wiped out financially the day you move in.
Down Payment Assistance Programs
Hundreds of down payment assistance programs exist at the state, county, and city level. These programs typically offer grants (free money you don’t repay) or low-interest loans that cover part or all of your down payment and closing costs. Some offer forgivable loans, meaning the balance is erased after you live in the home for a set number of years.
Eligibility usually depends on your income, the home’s purchase price, and whether you’re a first-time buyer. Many programs define “first-time buyer” as anyone who hasn’t owned a home in the past three years, so you may qualify even if you’ve owned property before. Assistance amounts vary widely but commonly range from a few thousand dollars up to $12,500 or more.
Your state’s housing finance agency is the best starting point for finding programs in your area. Many lenders who work with first-time buyers can also walk you through available options during the preapproval process.
Choosing Your Down Payment Amount
Putting more money down reduces your monthly payment, lowers your interest costs over the life of the loan, and can eliminate PMI. But draining your savings to hit 20% can leave you financially vulnerable right when you’re taking on the biggest expense of your life.
Here’s what the monthly payment looks like at different down payment levels on a $300,000 home, assuming a 30-year fixed mortgage at around 7%:
- 3% down ($9,000): You’re financing $291,000. Principal and interest run about $1,936 per month, plus PMI.
- 10% down ($30,000): You’re financing $270,000. Principal and interest drop to roughly $1,796 per month, plus PMI (though the PMI cost is lower at 10% down).
- 20% down ($60,000): You’re financing $240,000. Principal and interest come to about $1,597 per month with no PMI.
The difference between 3% and 20% down is roughly $340 per month in principal and interest alone, plus whatever you’d pay in PMI. Over 30 years, that adds up to tens of thousands of dollars. But if putting 20% down means waiting three more years to buy while rents keep rising, the math may favor getting in sooner with a smaller down payment and refinancing later when you’ve built equity.