How Much Down Payment Do You Need?
Category: Buying Basics
Down-payment options depend on country, lender, program, property, and borrower circumstances. The examples below are US-oriented educational context, not universal requirements or an eligibility assessment.
Examples of program terms
- Conventional loans: Some US programs may allow low down payments for qualifying borrowers.
- FHA loans: US FHA program terms can allow lower down payments, subject to current rules and borrower qualifications.
- VA and USDA programs: Eligible US borrowers or properties may have low- or no-down-payment options under program rules.
The 20% Benchmark
A larger down payment can change loan size, pricing, and insurance requirements, depending on the program and jurisdiction:
- May affect mortgage-insurance requirements on some US conventional loans.
- Produces a smaller modeled loan amount, which can lower modeled payments and interest under otherwise unchanged assumptions.
- May affect available pricing, subject to lender and program criteria.
A down payment below a program's threshold may involve mortgage insurance or other costs. Review the mortgage-insurance overview, then compare assumptions in the Affordability Calculator.