Guide ·
How much do I need for a house down payment?
Short answer: A house down payment depends on the loan. FHA loans allow as little as 3.5% down (HUD). Fannie Mae's HomeReady allows 3% for eligible borrowers (Fannie Mae). Most VA-backed loans need no down payment (VA). Putting 20% down on a conventional loan avoids private mortgage insurance (CFPB). Save for closing costs and a cushion too.
"You need 20% down" is the line everyone's heard. It's not the rule. It's one option. Here's the real range, and how to build a plan around it.
What are the minimums by loan type?
| Loan type | Minimum down payment (as stated by the source) | Source |
|---|---|---|
| FHA | As low as 3.5% of the purchase price | HUD |
| Fannie Mae HomeReady (conventional) | As low as 3% | Fannie Mae |
| VA-backed | Nearly 90% of VA-backed loans are made with no down payment | VA |
| Conventional with 20% down | No private mortgage insurance required | CFPB |
Every program has eligibility rules, and lenders stack their own requirements on top. The CFPB's home-buying resources are a solid place to compare options before you talk to lenders.
What does a lower down payment cost me?
A smaller down payment gets you in the door sooner. The trade-off: the CFPB notes that conventional loans with less than 20% down usually require private mortgage insurance, which protects the lender, not you. A bigger down payment can also mean a lower interest rate. And then there's time. Saving 20% takes a lot longer than saving 3–5%.
How much is that on a real price?
The math is simple. Here's an example home price of $300,000 (an illustration, not a market average):
| Down payment | Amount on an example $300,000 home |
|---|---|
| 3% | $9,000 |
| 3.5% | $10,500 |
| 5% | $15,000 |
| 10% | $30,000 |
| 20% | $60,000 |
Swap in a price from listings in your area to get your own number.
What else do I need to save for?
The down payment isn't the only cash you'll need:
- Closing costs. Lender and third-party fees, shown on the Loan Estimate each lender gives you.
- Moving costs. Truck or movers, utility deposits, setup fees.
- An emergency cushion. Repairs start the day you get the keys.
- First-month basics. Furniture, tools, a ladder, a lawn mower. Stuff renters never had to own.
Where should I keep the down payment while I save?
Somewhere safe, separate and easy to reach when it's time. A dedicated savings account with the goal in its name works for most people, and it keeps the money out of everyday checking. Money you'll need within a few years generally shouldn't sit in something that can drop in value right before you buy. Not sure? Ask a HUD-approved housing counselor or a financial professional.
How do I build a savings plan?
- Pick a target price range from local listings.
- Choose a likely loan type, and use its minimum or your preferred percentage to set the down payment goal.
- Add closing costs and a cushion for the total cash goal.
- Divide by the months until your target date. That's your monthly number.
- Automate it on payday into the separate savings account.
- Check in every quarter and adjust the price range or the date.
Worked example (example numbers only)
Example: Jordan targets a $300,000 home in about three years and plans for 5% down ($15,000), plus an example $9,000 for closing costs and a cushion. That's $24,000 total. Over 36 months, about $667 a month. If that doesn't fit, Jordan has options: look at a 3.5% FHA loan ($10,500 down on the same price), stretch the timeline, or lower the price range.
When a template helps, and when it doesn't
Helps if: you want the down payment as a named savings goal next to your bills and other sinking funds. The Budget Spreadsheet Bundle ($19.99) includes savings goal and sinking fund trackers with a paycheck budget. To see the year month by month, the 2027 Budget Planner Spreadsheet ($7.99) tracks plan vs. actual.
Doesn't help if: you need help choosing a loan or checking eligibility. That's a job for a lender or a HUD-approved housing counselor, not a spreadsheet. We don't sell a mortgage calculator.
Budgeting tools are in the Greenskeeper shop.
FAQ
Do I really need 20% down to buy a house?
No. The CFPB explains that 20% down lets you avoid private mortgage insurance on a conventional loan, but many loan programs allow less. FHA, Fannie Mae HomeReady and VA loans all have lower minimums.
What is the minimum down payment for an FHA loan?
HUD says an FHA down payment can be as low as 3.5% of the purchase price. Lenders set their own requirements on top of that.
Can I buy a house with no down payment?
Some borrowers can. The VA says nearly 90% of VA-backed loans are made with no down payment, for eligible service members, veterans and surviving spouses.
Is the down payment the only cash I need?
No. Plan for closing costs, moving costs and an emergency cushion after you move in. Ask lenders for a Loan Estimate to see closing cost figures for your situation.
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General information only, not financial or mortgage advice. Talk to a lender or HUD-approved housing counselor about your situation.
Published October 19, 2026 by Greenskeeper.studio. General information only, not financial advice.