How Much Down Payment Do You Need for a House? (2026)

You do not need 20% down to buy a house. Conventional loans go as low as 3%, FHA loans 3.5%, and VA and USDA loans require 0% down. The myth that you must have 20% keeps many would-be buyers on the sidelines. The truth: 20% has a specific benefit (avoiding mortgage insurance), but it is far from required.

Bar chart of monthly principal and interest on a $400,000 home with a 30-year loan at 6.5%: $2,440 with 3.5% down, $2,275 with 10% down, $2,023 with 20% down (which also avoids PMI).

Minimum down payment by loan type

Loan type	Minimum down	Note
Conventional	3%	For qualified buyers; PMI applies under 20%
FHA	3.5%	Score 580+; government-backed
VA (military)	0%	No down payment, no PMI
USDA (rural)	0%	Income and location limits
Jumbo	10%–20%	Larger loans, stricter terms

On a $300,000 home, 3% is $9,000 and 20% is $60,000, a big difference in how soon you can buy.

What 20% actually gets you

The 20% threshold matters for one main reason: private mortgage insurance (PMI). Put down less than 20% on a conventional loan and you pay PMI, typically 0.3% to 1.5% of the loan per year, until you reach about 20% equity. So 20% down:

Avoids PMI, lowering your monthly payment.
Reduces your loan, so less interest overall.
Builds instant equity and can win bidding wars.

Smaller down payment: the trade-offs

Putting less down is not “wrong,” it is a trade-off:

Pros: buy sooner, keep cash for emergencies and moving costs, start building equity now instead of renting.
Cons: PMI (until 20% equity), a bigger loan, a higher monthly payment, and less cushion if home values dip.

For many buyers, 3% to 5% down plus PMI is the difference between buying this year and waiting years to save 20%, often a reasonable trade if you plan to stay put.

Don’t forget closing costs

Beyond the down payment, budget 2% to 5% of the price for closing costs (lender fees, title, escrow, prepaid taxes and insurance). And keep your emergency fund intact, do not drain every dollar into the purchase.

Bottom line

Minimums: 3% conventional, 3.5% FHA, 0% for VA and USDA.
20% is optional, its main perk is avoiding PMI.
Weigh buying sooner with PMI against waiting to save more, and budget closing costs on top.

See how the down payment changes your monthly payment with our mortgage calculator, and check affordability in how much house can I afford. This article is general information, not financial advice.