The down payment is usually the biggest cash hurdle between renting and owning. The good news: you probably need a lot less than you think. The better news: the “right” down payment isn’t a fixed number — it depends on the loan you choose, the home you want, and how much cash you want to keep in the bank after closing.
Before you start saving toward a random target, use our free home affordability calculator to see exactly how different down payment amounts change the house you can afford, your monthly payment, and your total interest paid. Then come back here — this guide will help you decide how much to actually put down.
The short answer: how much down payment do you need?
For most buyers, the minimum down payment in 2026 ranges from 0% to 5% of the purchase price, depending on the loan type. The classic “20% down” rule still exists — but it’s a guideline for avoiding private mortgage insurance, not a requirement to buy a home.
Here’s the quick version by loan type:
- VA loan: 0% down (active-duty military, veterans, eligible spouses)
- USDA loan: 0% down (rural and some suburban areas)
- FHA loan: 3.5% down (580+ credit score) or 10% (500–579)
- Conventional 97 loan: 3% down (first-time buyers, income limits apply)
- Conventional loan: 5% down (standard)
- Jumbo loan: 10–20% down (high-balance loans)
On a $400,000 home, that means the entry ticket could be as low as $0 with a VA loan, $12,000 with a Conventional 97, $14,000 with FHA, or $20,000 with a standard conventional loan. Put your own numbers in our affordability calculator to see what each option costs you every month.
Why 20% became “the rule”
You’ve probably heard that you need to put 20% down to buy a house. That rule comes from the fact that lenders require private mortgage insurance (PMI) on conventional loans when your down payment is under 20%. Putting 20% down avoids PMI, usually earns you a better interest rate, and gets you instant equity in your home.
But here’s the thing: 20% is a goal, not a gate. According to the National Association of Realtors, the median down payment for all US home buyers in recent years has hovered around 14–15%, and for first-time buyers it’s closer to 6–8%. Most people don’t put 20% down — and they still buy homes.
When 20% actually makes sense
- You have plenty of savings left after closing (at least 3–6 months of expenses)
- You want the lowest possible monthly payment
- You plan to stay in the home 7+ years
- Interest rates are high and PMI would eat your budget
- You’re buying in a competitive market and need a stronger offer
When 20% is a bad idea
- It would drain your emergency fund to zero
- You’d delay buying by 2+ years to save more
- Home prices in your area are rising faster than you can save
- You qualify for a VA or USDA loan (free money — take it)
- Your interest rate is low enough that the math favors investing instead
Down payment by loan type — the full breakdown
Conventional loans
Conventional loans are the most common mortgages in the US. Standard conventional requires 5% down, but first-time buyers can often qualify for the Conventional 97 program with just 3% down. HomeReady (Fannie Mae) and Home Possible (Freddie Mac) also allow 3% down with income limits. PMI is required until you hit 20% equity, but it drops off automatically at 78% loan-to-value.
FHA loans
FHA loans are backed by the Federal Housing Administration and built for buyers with lower credit scores or smaller savings. You can qualify with 3.5% down if your credit score is 580 or higher, or 10% down if your score is between 500–579. The trade-off: FHA requires Mortgage Insurance Premium (MIP) for either 11 years or the life of the loan, depending on your down payment.
VA loans
If you’re an active-duty service member, veteran, or eligible surviving spouse, the VA loan is the best deal in American mortgages. Zero down payment, no PMI, and competitive rates. The only cost is a one-time VA funding fee (rolled into the loan), which is waived for veterans with service-connected disabilities.
USDA loans
USDA loans (backed by the US Department of Agriculture) also offer 0% down — but only on homes in eligible rural and suburban areas. You’d be surprised how many neighborhoods qualify. Income limits apply, and there’s a small guarantee fee, but it’s a fantastic option for buyers in smaller towns.
Jumbo loans
For loans above the conforming limit (around $766,550 in most counties in 2026, higher in expensive markets), you’ll need a jumbo loan. These typically require 10–20% down, a higher credit score, and thicker cash reserves.
Down payment examples on real home prices
Here’s what different down payments look like on common home prices:
| Home price | 3% down | 5% down | 10% down | 20% down |
|---|---|---|---|---|
| $250,000 | $7,500 | $12,500 | $25,000 | $50,000 |
| $300,000 | $9,000 | $15,000 | $30,000 | $60,000 |
| $400,000 | $12,000 | $20,000 | $40,000 | $80,000 |
| $500,000 | $15,000 | $25,000 | $50,000 | $100,000 |
| $600,000 | $18,000 | $30,000 | $60,000 | $120,000 |
Remember: the down payment is just one piece of the cash you need at closing. You’ll also pay closing costs (typically 2–5% of the purchase price), a home inspection, and an appraisal. Run the full numbers in our affordability calculator to see your total out-of-pocket cost.
Down payment assistance programs
Nearly every state, county, and major city in the US offers some form of down payment assistance (DPA) for first-time buyers, low-to-moderate income households, teachers, nurses, firefighters, and more. These programs can provide grants, forgivable loans, or low-interest second mortgages that cover part or all of your down payment and closing costs.
Common types of DPA:
- Grants — free money you never have to repay
- Forgivable loans — a second loan that’s forgiven after you live in the home for 5–10 years
- Deferred loans — a no-interest second loan you pay back when you sell or refinance
- Matched savings — the program matches every dollar you save toward a down payment
Check with your state’s Housing Finance Agency (HFA) or ask a Beycome partner lender about what’s available in your area. You’d be shocked how many buyers leave free money on the table.
How your down payment affects your monthly payment
The bigger your down payment, the smaller your loan — and the smaller your monthly mortgage payment. But the relationship isn’t linear. Going from 5% down to 20% down on a $400,000 home at a 6.5% rate saves you about $400/month. That’s real money, but is it worth tying up an extra $60,000 in your house instead of keeping it in savings or investments?
That’s the kind of question our affordability calculator is built to answer. Move the down payment slider and watch your monthly payment, total interest, and cash-to-close update in real time.
Save smart: buy with Beycome and get up to 2% back
Here’s the part nobody tells you: a typical 3% buyer agent commission is baked into the purchase price of every home. You pay it as part of your loan, with interest, every single month. When you buy with Beycome, we rebate up to 2% of that commission back to you at closing — cash you can use toward your down payment, closing costs, or just a bigger safety cushion.
On a $400,000 home, that’s roughly $8,000 back in your pocket. On a $600,000 home, it’s about $12,000. That alone can be the difference between 5% and 10% down.
Bottom line: how much down payment do you need?
There’s no magic number. The right down payment is the one that:
- Qualifies you for the loan type you want
- Keeps your monthly payment comfortably affordable
- Leaves you with a healthy emergency fund after closing
- Doesn’t delay your purchase by years while prices keep climbing
Instead of saving toward a random percentage, figure out what fits your life. Use our free home affordability calculator to model different scenarios in seconds — or join the Beycome buyer program and put your commission rebate to work as part of your down payment. Either way, you’ll know exactly where you stand before you ever talk to a lender.
Ready to see what you can actually afford? Try the Beycome affordability calculator — free, instant, and built to show you the real numbers.