Can I buy a home with no money down?

It is possible through VA loans for eligible veterans and service members, or USDA loans for eligible properties and household incomes, though qualification requirements apply.

Is private mortgage insurance required if I put down less than 20%?

On most conventional loans, yes, private mortgage insurance is typically required below 20% down, though it can often be removed later once sufficient equity is reached.

Do investment properties require a larger down payment?

Generally yes, investment property loans often require a higher down payment than owner-occupied purchases due to the added risk lenders associate with rental properties.

Can gift funds be used for a down payment?

Many loan programs allow gift funds from eligible donors, such as family members, subject to documentation requirements that vary by program.

How do I know which down payment amount is right for me?

It depends on your savings, monthly budget goals, and whether avoiding mortgage insurance is a priority. A calculator or a conversation with a loan officer can help compare scenarios.

Mortgage Costs

How Much Down Payment Do I Need to Buy a Home?

Compare typical down payment ranges across conventional, FHA, VA, USDA, jumbo, and investment property loans, plus assistance program options.

Updated 2026-08-17| Applies to: Homebuyers comparing how much cash they may need upfront across different loan programs before setting a savings target.

The short answer

The down payment needed depends heavily on the loan program: conventional loans can allow as little as 3% down for qualified borrowers, FHA often uses 3.5%, VA and USDA loans can allow no down payment for eligible borrowers, and jumbo or investment property loans typically require more. Down payment assistance programs may also reduce upfront cash needed depending on eligibility. The right amount for you also depends on your monthly payment goals and whether mortgage insurance applies.

Is 20% down actually required?

No. The idea that 20% down is required for every mortgage is one of the most common misconceptions in home financing. Many programs allow considerably less, though putting down 20% on a conventional loan can help you avoid private mortgage insurance, which is a separate consideration from whether it is required.

How do down payment minimums compare across programs?

Program	Typical minimum down payment	Notes
Conventional	As low as 3% for qualified first-time buyers	Private mortgage insurance often applies below 20% down
FHA	3.5% with qualifying credit	Requires mortgage insurance premium for most of the loan term
VA	Often 0% for eligible veterans and service members	Funding fee may apply depending on circumstances
USDA	Often 0% in eligible rural and some suburban areas	Property and household income limits apply
Jumbo	Often 10 to 20% or more	Guidelines vary more by lender for larger loan amounts
Investment property	Often 15 to 25%	Higher down payments are common due to added risk

What is down payment assistance?

Down payment assistance programs are offered by some state, county, and city agencies, as well as certain nonprofit organizations, to help eligible buyers cover part of their down payment or closing costs. These programs often come with their own income limits, homebuyer education requirements, or property location restrictions, and funding availability can change. A loan officer can help identify whether any programs might apply to your situation.

How does the size of a down payment affect the rest of the loan?

A larger down payment generally reduces the loan amount, which can reduce the monthly payment.
On conventional loans, reaching 20% down can avoid private mortgage insurance altogether.
A larger down payment can sometimes help offset a lower credit score in the eyes of some lenders.
Putting down more can also affect how much cash reserve you have left after closing, which is worth weighing carefully.

How should you decide how much to put down?

This depends on your savings, your monthly payment comfort level, whether you want to avoid mortgage insurance, and how much you want to keep in reserve for moving costs, repairs, or emergencies after closing. Running a few different down payment scenarios with a calculator or loan officer can help you compare the tradeoffs directly.

Down payment guidelines referenced here are general. Specific minimums depend on the lender, credit profile, property type, and current program rules.

Common mistakes to avoid

Assuming you must save 20% before you can buy
Not researching down payment assistance programs that might apply to you
Putting every available dollar toward the down payment and leaving no reserves
Overlooking that private mortgage insurance can often be removed later once equity increases
Comparing down payment percentages without also comparing the resulting monthly payment