Plenty of buyers assume they need 20% down to purchase a home, but the real minimum is often far lower — and knowing your true options can move your timeline up by years. The reality is more flexible than that — and understanding your options can help you plan more accurately.
Why 20% Is Still a Common Benchmark
Putting 20% down on a conventional loan has real advantages: it typically means a lower interest rate, a lower monthly payment, and — importantly — no private mortgage insurance. PMI is an added monthly cost that protects the lender (not you) if you default, and it applies to most conventional loans where the down payment is less than 20%. It can be removed once you've built sufficient equity, but it's an ongoing cost until that point.
Lower Down Payment Options
For many buyers, waiting to save 20% isn't the right call — especially in markets where home values are rising faster than savings can keep pace. Several loan programs exist specifically to make homeownership accessible with less upfront:
- Conventional loans can be available with as little as 3–5% down, depending on your financial profile, though PMI typically applies
- FHA loans generally allow down payments as low as 3.5% for qualified borrowers; eligibility is based in part on credit score and income
- VA loans are available to eligible veterans, active-duty service members, and surviving spouses — and require no down payment
- USDA loans are also zero-down for eligible borrowers purchasing in qualifying rural and suburban areas
Each of these programs has its own eligibility requirements, and the right fit depends on your specific situation.
Putting More Down Than Required
If you have the savings and want to put down more than the minimum, that's a valid strategy too. A larger down payment reduces your loan balance, lowers your monthly payment, and can strengthen your application if other factors — like a shorter employment history — might otherwise give a lender pause. Just make sure you're not depleting every dollar of savings to do it; keeping cash reserves for moving costs, repairs, and emergencies matters.
The Bottom Line
There's no single right answer to how much you should put down. It depends on the loan program, your savings, your monthly budget, and your timeline. A mortgage broker can help you map out scenarios so you can see how different down payment amounts affect your payment and total cost.
Talk with our team to understand which loan program fits your situation best.
