How much down payment do I need?

Do I need 20% down to buy a house?

No. Twenty percent can matter in some situations, but it is not a universal minimum.

Compare the options you qualify for, what each costs, and how much cash you should reasonably put into the purchase.

What mortgage options may require less than 20% down?

Eligibility and requirements apply to every option.

• Conventional — some programs allow eligible borrowers to purchase with as little as 3% down.
• FHA — eligible borrowers may make a 3.5% minimum down payment; mortgage insurance applies.
• VA — eligible Veterans, service members and certain surviving spouses may be able to purchase with no down payment; entitlement, appraisal and lender requirements apply.
• USDA — qualifying borrowers and eligible properties may receive 100% financing; income, property and other rules apply.

Your down payment is not your entire upfront cost

Buyers may also need cash beyond the down payment.

• Closing costs and prepaid taxes or insurance
• Inspections and applicable appraisal expenses
• Moving expenses
• Immediate repairs, improvements and other initial home expenses

Is a bigger down payment always better?

Not necessarily. More down can reduce the loan amount and monthly principal-and-interest payment and may affect mortgage insurance.

But it also leaves less cash for emergencies, moving, repairs and ownership costs.

How can my down payment affect mortgage insurance?

Rules vary by mortgage. Some conventional loans may require private mortgage insurance with a smaller down payment.

FHA has its own insurance structure. VA-backed loans generally do not require monthly private mortgage insurance, though many borrowers pay a funding fee unless exempt.

Think about what you’ll have left after closing

The goal is to understand the tradeoff between the amount borrowed, monthly costs, upfront costs and financial resources retained—not simply to make the largest possible down payment.