How Much Down Payment Do You Really Need?

The idea that you need 20% down to buy a home keeps a lot of would-be buyers on the sidelines. The truth is most people put down far less. Here's the real picture.

What each loan type requires

• Conventional: as little as 3% down for qualified buyers.
• FHA: 3.5% down with a 580+ credit score.
• VA: 0% down for eligible veterans and service members.
• USDA: 0% down in eligible areas, within income limits.
• Jumbo: usually 10–20%+, since loan amounts are larger.

What 20% actually gets you

Putting down 20% isn't required — it's a threshold. On a conventional loan, reaching 20% equity removes PMI, which lowers your payment. A bigger down payment also means a smaller loan and less interest over time. But it's a trade-off, not a rule.

The case for putting down less

Less down means you keep cash for moving costs, repairs, and an emergency fund — and you buy sooner instead of waiting years to save 20%. For many buyers, getting into a home earlier outweighs the cost of PMI, which you can later remove or refinance away.

How to find your number

Run your scenario through a payment calculator to see how different down payments change your monthly cost, then let brokers price real options. The right down payment is the one that fits your budget and goals — not a number from a rule of thumb.