Updated October 2026. US minimum down payments by loan type, what they cost on a typical home, when PMI applies and comes off, plus a short note for Canadian buyers. Figures read October 28, 2026.
The minimum down payment in the US is 0% on VA and USDA zero-down loans, 3.5% on an FHA loan with a 580 credit score, and 3% on some conventional programs. On September 2026’s median existing-home price of $417,500 (NAR), that’s $0, $14,613 or $12,525. Putting 20% down ($83,500) avoids private mortgage insurance on a conventional loan.
Jump to: 💲 Minimums · ⏱️ Rate and PMI · 🏠 Pricier homes · 🪜 Property type · 🤝 Is 20% better? · ❓ FAQ
Key takeaways
- FHA: 3.5% down with a 580+ score, 10% with 500 to 579; VA and USDA: 0% for eligible buyers (Experian, HUD, VA).
- First-time buyers put down a median 10% and repeat buyers 23% in NAR’s 2025 profile.
- PMI usually applies to conventional loans with less than 20% down and must come off automatically at 78% of the original value (CFPB).
- Above $832,750, most areas leave conforming territory for jumbo loans, which set their own down payment rules (FHFA, 2026).
The old advice was “save 20% first.” Most buyers don’t. In NAR’s 2025 Profile of Home Buyers and Sellers, the median first-time buyer put down 10%, matching the highest level recorded since 1989, and repeat buyers put down 23% (NAR). So the real question isn’t whether you can buy with less than 20%. It’s what a smaller down payment costs you each month.
What is the minimum down payment on a house in 2026?
It depends on the loan. Here’s each program on the national median price.
| Loan type | Minimum down | On $417,500 | Key condition |
|---|---|---|---|
| VA | 0% | $0 | Eligible service members and veterans; price not above appraised value |
| USDA | 0% | $0 | Eligible areas, income limits, primary residence |
| Conventional low down payment | 3% | $12,525 | Programs such as Freddie Mac Home Possible, with income limits |
| FHA | 3.5% | $14,613 | Credit score 580+; 10% if 500 to 579; primary residence |
| Conventional, no PMI | 20% | $83,500 | Avoids private mortgage insurance |
Sources: FHA’s 3.5% minimum is on HUD’s loan page (HUD), and the 580 and 500 to 579 score bands are summarized by Experian (Experian). VA says a VA-backed purchase loan often needs no down payment as long as the price isn’t above the appraised value (VA). Freddie Mac’s Home Possible program offers 3% down for low- and very low-income borrowers (Freddie Mac).
The down payment isn’t the loan. It’s the share of the price you pay in cash at closing; the mortgage covers the rest. You’ll also need closing costs on top, usually paid the same day, so budget for both.
How does the down payment change your rate and monthly cost?
Two ways. First, a bigger down payment usually gets you a better rate, because the lender’s risk is lower. You have more “skin in the game,” so lenders see you as less likely to walk away. Second, it changes whether you pay mortgage insurance.
On a conventional loan with less than 20% down, you’ll usually pay private mortgage insurance. It protects the lender, not you, if you stop paying (CFPB). FHA loans carry their own mortgage insurance premiums instead. Some lenders offer low-down conventional loans without PMI, but at a higher rate; the CFPB suggests comparing both options over the time you plan to keep the loan.
The good news is that PMI isn’t forever. You can ask your servicer to cancel it when your balance is scheduled to reach 80% of the home’s original value, and the servicer must end it automatically at 78%, as long as you’re current on payments (CFPB).
Rates make all of this sharper right now. The 30-year fixed averaged 7.32% on October 22, 2026 (Freddie Mac). At that rate, every $10,000 you borrow adds roughly $69 a month in principal and interest. That’s the trade-off: a bigger down payment means a smaller loan and a smaller payment, but less cash in the bank for repairs and emergencies.
Do you need to save more for a pricier home?
Yes, in two ways. The same percentage is simply more dollars: 3.5% of $700,000 is $24,500. And above the conforming loan limit, the rules change. For 2026, that limit is $832,750 for a one-unit home in most of the US, higher in costly counties (FHFA). Loans above it are jumbo loans, and jumbo lenders set their own down payment and reserve requirements, which are usually stricter.
Get a pre-approval before you shop. It tells you how much a lender will actually lend, so you know your price range and your down payment target. New to the process? Here’s what a lender does from application to closing. Our guide Are you prepared to buy a house? has a checklist, and how to buy a house walks through each step. Buying in Florida? Beycome Mortgage’s first-time buyer page covers down payment and closing costs for Florida buyers.
Does the type of property change the minimum?
It does. FHA, VA and USDA loans are for homes you’ll live in. FHA can only be used for a primary residence, and USDA loans are only for owner-occupied homes (Experian). So the 0% and 3.5% options disappear once you’re buying a vacation home or a rental, though co-owning or borrowing against equity can still keep your savings intact.
For second homes and investment property, you’ll be looking at conventional loans, and lenders typically ask for a bigger down payment than on a home you live in, plus cash reserves. Ask two or three lenders for their exact numbers. If you’re thinking of keeping your current house as a rental when you move up, read buying a second home and renting out your first. And if you’d rather rent for now, USAGov keeps a page on rental properties and housing help programs.
Sell smarter
List your home on the MLS from $99
A flat fee instead of a percentage, and $0 to Beycome at closing. You stay in control of your sale.
Sell your home →Buy smarter
Get up to 2% back at closing
On homes listed by other agents, Beycome credits you up to 2% of the price at closing (1% kept, $1,499 minimum; not on FSBO homes or homes listed by Beycome sellers).
Buy a home →Buying in Canada? The rules are different. There, the minimum is 5% of the first $500,000 and 10% of the part above it, and 20% down avoids the default insurance premium. If that applies to you, you can learn more here from a Canadian mortgage broker.
Is 20% down still the better deal?
It’s cheaper per month, not always better overall. With 20% down on a conventional loan you skip PMI, borrow less and often get a better rate. If you have the cash and still keep an emergency fund, it’s usually the economical choice.
But draining every account to hit 20% can backfire. A new roof, a job change or a medical bill in year one is harder to handle with no savings. Many buyers choose 5% or 10% down, pay PMI for a few years, and drop it once they reach 80% loan-to-value. A legal explainer on these mortgages from Cornell’s Legal Information Institute is a good primer on how the loan and the lien work.
Two more ways to keep cash in your pocket at closing. Look at the costs you’ll pay besides the down payment; our guide on title insurance explains one of the bigger line items. And look at the buyer-agent commission. Since August 17, 2024, buyers sign a written agreement with their agent, and that agent’s pay is not set by law and is fully negotiable (NAR). Our article on how much commission realtors make has the background.
With Beycome’s buyer program, there’s no upfront fee; Beycome keeps 1% of the price (minimum $1,499) and credits the rest of the buyer-agent commission at closing, with lender approval. On a $400,000 home where the seller offers 3%, that’s $8,000 back. The 3% is an example only; sellers choose whether to offer buyer-agent compensation and how much, and it isn’t shown on the MLS. The credit is open to every buyer on homes listed by other agents, but it can’t apply where no buyer-agent commission is offered, like most FSBO homes, or on homes listed by Beycome sellers.
Frequently asked questions
What is the minimum down payment for a house?
0% on VA and USDA loans for eligible buyers, 3.5% on FHA with a credit score of 580 or more, and 3% on some conventional programs. On a $417,500 home, 3.5% is $14,613.
Can I buy a house with 3% down?
Yes, with some conventional programs such as Freddie Mac Home Possible, which offers 3% down for low- and very low-income borrowers. Expect to pay private mortgage insurance.
Do I need 20% down to avoid PMI?
On a conventional loan, usually yes. Below 20% down you’ll typically pay PMI until your balance reaches 80% of the original value (on request) or 78% (automatic), per the CFPB.
What is the average down payment on a house?
In NAR’s 2025 profile, first-time buyers put down a median 10% and repeat buyers 23%.
Can I use an FHA loan for a rental property?
No. FHA loans are for a primary residence. USDA loans are owner-occupied only too. Rentals and second homes usually need a conventional loan with a larger down payment (here’s how to buy a second home with no money down of your own).
What is the minimum down payment in Canada?
5% of the first $500,000 and 10% of the portion above $500,000. Putting 20% down avoids the mortgage default insurance premium.
Figures as of October 28, 2026: NAR September 2026 existing-home sales (median price $417,500) and 2025 Profile of Home Buyers and Sellers; FHFA 2026 conforming loan limit; Freddie Mac PMMS for October 22, 2026; FHA, VA, USDA and Home Possible terms from HUD, VA, Experian and Freddie Mac. Lender requirements vary; get written quotes. The monthly cost per $10,000 is an estimate for a 30-year fixed loan at 7.32%.
Buyer credit: no upfront fee; Beycome keeps 1% of the price (minimum $1,499) and credits the rest of the buyer-agent commission at closing, with lender approval. It is open to every buyer on homes listed by other agents; it can’t apply where no buyer-agent commission is offered, like most FSBO homes, or on homes listed by Beycome sellers. Beycome Mortgage LLC (NMLS #2523620) is licensed in Florida only and is not required for the buyer credit.
Commission figures are examples only. Commissions are not set by law or NAR rules and are fully negotiable; sellers choose whether to offer any buyer-agent compensation, and since August 17, 2024 such offers can’t be shown on the MLS. General information, not legal, tax or financial advice; rules vary by state and MLS.
Sources
- NAR, existing-home sales for September 2026, read October 28, 2026.
- NAR, 2025 Profile of Home Buyers and Sellers news release, read October 28, 2026.
- HUD, let FHA loans help you, read October 28, 2026.
- Experian, government-backed mortgages, read October 28, 2026.
- VA, VA-backed purchase loans, read October 28, 2026.
- Freddie Mac, Home Possible, read October 28, 2026.
- CFPB, what is private mortgage insurance, read October 28, 2026.
- CFPB, when PMI can be removed, read October 28, 2026.
- FHFA, 2026 conforming loan limits, read October 28, 2026.
- Freddie Mac, Primary Mortgage Market Survey, read October 28, 2026.
- NAR, settlement FAQs, read October 28, 2026.
- Altrua, minimum down payment in Canada, read October 28, 2026.
- Cornell LII Wex, mortgage, read October 28, 2026.
- USAGov, finding a home and rental housing help, read October 28, 2026.
- Beycome, buyer program terms, October 2026.
Disclosure & Disclaimer
Beycome provides real estate services through affiliated licensed brokerages and has a commercial interest in the services and business models discussed on this blog. Content reflects Beycome’s perspective and may promote our services; it should not be treated as independent or neutral reporting.
Articles are provided for general informational and educational purposes only, not as financial, tax, legal, or investment advice or a recommendation for your particular situation. Reading this blog does not create a brokerage, advisory, or other professional relationship.
Information, opinions, pricing, service descriptions, and comparisons reflect the sources and information available when an article was published or last updated and may change. Although we aim for accuracy, we do not guarantee that all content is complete, current, or applicable to your circumstances. Laws, market conditions, and service availability vary by location. Examples and estimated savings are illustrative, depend on stated assumptions, and do not guarantee individual results.
Verify relevant information directly and consult qualified professionals before making decisions. Beycome services are subject to applicable agreements, eligibility requirements, and state-specific terms.
