What is the typical down payment on a house?

The traditional down payment is 20% of the home's purchase price, which lets you avoid PMI. However, most buyers put down between 3% and 10%. FHA loans require as little as 3.5%, conventional loans go as low as 3%, VA and USDA loans allow 0% down.

How does the down payment affect my loan?

A larger down payment lowers your loan amount, which means lower monthly payments and less total interest. It also increases your equity stake immediately and lets you avoid PMI once you cross 20%. A smaller down payment keeps more cash liquid but increases your monthly payment and may require PMI.

Where can I get the down payment funds?

Common sources include personal savings, gifts from family (most loan programs allow this), down payment assistance programs (state and local), 401(k) loans or first-time homebuyer withdrawals, equity from a current home sale, and grants for eligible buyers.

Down Payment Calculator (2026) — See If You Hit 20%

Home Details

Home Price

Down Payment (%)

Quick options:

Down Payment$80,000

Loan Amount$320,000

Down Payment20.0%

No PMI: With 20% or more down, you won't need PMI, saving you money monthly.

What is a down payment?

A down payment is the portion of the home's purchase price you pay upfront in cash, with the rest covered by your mortgage. The traditional benchmark is 20% because it lets you avoid Private Mortgage Insurance (PMI). On a $400,000 home, 20% down is $80,000 — a substantial amount that most buyers don't have saved. That's why loan programs offer lower minimums: conventional loans as low as 3%, FHA loans at 3.5%, VA and USDA loans at 0%. The trade-off for a smaller down payment is higher monthly payments, mandatory PMI (under 20%), and more total interest paid.

How to use this calculator

Enter the home purchase price.
Enter your planned down payment amount or pick a percentage.
Add the loan term, interest rate, and your credit score for a personalized PMI estimate.
Click Calculate to see your loan amount, monthly payment, PMI cost, and total closing cash needed.

Understanding your results

The calculator shows your loan amount (home price minus down payment), down payment percentage (which determines whether you pay PMI), monthly principal and interest, and estimated PMI cost if your down payment is below 20%. You'll also see total closing cash needed — down payment plus typical closing costs. Compare different scenarios by changing your down payment percentage to see the monthly payment impact.

Down payment strategies

Save 20% when possible — it eliminates PMI and saves thousands in interest over the life of the loan.
Use 3.5% (FHA) or 0% (VA/USDA) if you qualify — these programs are designed for buyers with limited savings.
Wait on the sidelines if your current down payment puts your monthly payment above the 28% housing ratio.
Look into down payment assistance — most states and many cities offer grants or low-interest loans for first-time buyers that you can stack with your own savings.
Consider gift funds — most loan programs allow down payment gifts from family with a letter explaining the relationship and that repayment isn't expected.

Frequently asked questions

Is a 20% down payment required? No. Most loan programs allow 3% to 5% down. Some (VA, USDA) allow 0%. The 20% number is significant because it's the threshold for avoiding PMI on conventional loans.

Can I buy a house with no money down? Yes, with VA loans (veterans), USDA loans (rural areas, income limits), and some conventional 97% LTV programs combined with down payment assistance. A 0% down payment means PMI or MIP in most cases.

What credit score do I need? Conventional loans typically require 620+. FHA accepts 580 with 3.5% down (or 500–579 with 10% down). VA and USDA lenders often prefer 620+.

Related calculators

Affordability Calculator — how much house can you afford?
PMI Calculator — what will PMI cost?
FHA Loan Calculator
First-Time Home Buyer Guide