How much down payment do you actually need?
Your down payment is the single biggest lever you control when buying a home — it determines your loan amount, whether you'll pay PMI, and how much cash you need at closing. This calculator shows the trade-offs across common down payment levels (5%, 10%, 15%, 20%, and 25%) side by side, so you can see the real dollar impact of each one rather than guessing.
A worked example
On a $400,000 home, a 5% down payment is $20,000, leaving a $380,000 loan. A 20% down payment is $80,000, leaving a $320,000 loan — $60,000 more upfront in exchange for a noticeably smaller monthly principal & interest payment, no PMI, and less interest paid over the life of the loan. Neither number is "right"; the trade-off is cash today versus cash flow every month for the next 15–30 years.
Minimum down payments by loan type
- Conventional: as low as 3–5% for many first-time buyer programs.
- FHA: 3.5% minimum with a 580+ credit score. See the FHA Affordability Calculator.
- VA: 0% down for eligible veterans and service members. See the VA Affordability Calculator.
- USDA: 0% down in eligible rural and suburban areas, income limits apply.
The 20% threshold
20% down is a common benchmark because it's the point at which conventional lenders typically stop requiring PMI. Below 20%, expect to pay PMI — usually 0.3%–1.5% of your loan amount annually — until you build enough equity to have it removed. See our PMI Calculator for a closer look at that cost.
Don't forget closing costs
Your down payment isn't the only cash you'll need at closing. Budget for closing costs too — typically 2–5% of your loan amount, separate from and on top of your down payment. Use our Closing Cost Calculator to estimate that separately so your total cash-to-close number is realistic before you make an offer.