Know Your Numbers
How much do I really need for a down payment?
The 20% figure you have heard is a myth for most buyers. Here is what down payments actually look like — and what a smaller one really costs you.
The short version
Many loans allow far less than 20% down — some programs go as low as 3%, and a few require nothing down for buyers who qualify. The 20% number mostly matters because it is the point where you can usually avoid monthly mortgage insurance.
The options at a glance
- Conventional loans — often as little as 3–5% down.
- FHA loans — commonly around 3.5% down, with more flexible credit requirements.
- VA and USDA loans — 0% down for eligible buyers (military/veterans, or certain rural areas).
- 20% down — not required, but it usually lets you skip mortgage insurance.
These are general program features, not offers — what you qualify for depends on your situation.
What a smaller down payment costs you
Less down means a bigger loan, a higher monthly payment, and usually mortgage insurance until you build enough equity. None of that is a dealbreaker — it is a trade-off worth seeing in real numbers before you decide.
Down-payment help exists
Many first-time-buyer and local assistance programs can reduce what you need up front. They are easy to miss if you do not ask.
A quick example
An illustration, not a quote: on a $400,000 home, 20% down is $80,000 — but at 5% down it is $20,000, and at 3% it is $12,000. The lower amount gets you in the door sooner; the trade-off shows up in your monthly payment.
Every figure here is an example to show how the pieces fit — not an offer, quote, or guarantee. Your actual numbers depend on the loan program, your credit, and current rates.
Not sure which path fits you? That is normal.
There are no dumb questions here. It is completely reasonable to want the down-payment options laid out plainly before you start saving toward a number you may not even need.
Want to know where you actually stand?
No credit pull to start. No pressure. Just a clear read on your numbers.