📋 Table of Contents
Mortgage Down Payment Guide
Down payment requirements vary significantly by loan type — understanding your options helps you plan savings and choose the right loan type for your situation.
Down Payment by Loan Type
| Loan Type | Minimum Down Payment |
|---|---|
| Conventional | 3% |
| FHA | 3.5% |
| VA | 0% (eligible borrowers) |
| USDA | 0% (eligible properties) |
The 20% Down Payment Myth
Despite common belief, 20% down is not required to buy a home — it's simply the threshold to avoid PMI on a conventional loan, not a universal requirement across all loan types.
Down Payment Assistance Programs
Many states and local governments offer down payment assistance programs, sometimes providing grants or low-interest loans specifically to help cover this upfront cost for eligible buyers.
Common Mistakes
Delaying homeownership to save a full 20% down payment when a lower-down-payment loan type could work sooner, especially given ongoing rent costs during the extended saving period.
Frequently Asked Questions
No — this is a common misconception. Many loan types allow 3-3.5% down, or even 0% for eligible VA/USDA borrowers. 20% simply avoids PMI on a conventional loan.
Yes — many states and local governments offer down payment assistance programs, sometimes providing grants or low-interest loans for eligible first-time or lower-income buyers.