How Much Down Payment Do You Need for a House in 2026?

Last updated 07/23/2026 by

Ante Mazalin

Edited by

Andrew Latham

Fact checked by

Andy Lee

Summary:

A down payment on a house is the portion of the purchase price you pay upfront, with a mortgage covering the rest. How much you need depends on your loan type and your goals rather than a single fixed number.

Conventional loans: Available to many buyers with a low percentage down.
FHA loans: Built for buyers with smaller savings or lower credit scores.
VA and USDA loans: Let eligible buyers purchase with nothing down.
Twenty percent down: Optional, but it removes private mortgage insurance.

The idea that you need 20% down to buy a house keeps many renters on the sidelines longer than they need to be.

The real minimum is far lower, and the right number for you sits somewhere between what you can qualify for and what keeps your budget comfortable. Here is how the options break down.

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How much down payment do you need for a house?

You can buy a house with as little as 0% to 3.5% down, depending on the loan type. A 20% down payment is optional and mainly serves to avoid private mortgage insurance.

Conventional loans start at 3% down for many buyers. FHA loans require 3.5%, while VA and USDA loans allow qualified buyers to put nothing down.

The loan you choose sets your floor, and your savings and monthly budget decide how far above it you go.

Loan type	Minimum down payment	Best for
Conventional	3%	Buyers with solid credit and some savings
FHA	3.5%	Lower credit scores or smaller down payments
VA	0%	Eligible veterans and service members
USDA	0%	Low-to-moderate income buyers in rural areas

What is a good down payment for a house?

A good down payment is one that keeps your monthly payment affordable without emptying your savings.

Twenty percent is the classic target because it removes private mortgage insurance and lowers your payment. For many buyers, though, putting down 5% to 10% and keeping a cash cushion is the smarter move.

The best amount is not the largest you can scrape together. A house that leaves you with no emergency fund creates more risk than a slightly larger loan.

Minimum down payment for a first-time home buyer

First-time buyers can put down as little as 3% with a conventional loan or 3.5% with an FHA loan.

Neither program requires you to be a first-time buyer, but both are popular first purchases because they keep upfront costs low. VA and USDA loans go further, allowing eligible buyers to skip the down payment entirely.

Many first-time buyers also qualify for down payment assistance programs that supply grants or low-interest second loans to cover part of the cash needed.

Pro Tip: Compare a 5% and a 20% down scenario on the same home before deciding. Weigh how much FHA and conventional loans differ in monthly cost once mortgage insurance is included, not just the down payment itself.

Why 20% down is the benchmark

Twenty percent is the point where lenders stop requiring private mortgage insurance on a conventional loan.

PMI protects the lender, not you, and typically costs between 0.46% and 1.5% of the loan amount each year. Reaching 20% equity removes that cost and lowers your monthly payment.

Weighing 20% down against a smaller amount comes down to whether keeping cash on hand matters more than avoiding private mortgage insurance for a few years.

How to decide how much to put down

Work from your budget and savings rather than a fixed percentage.

Confirm which loan type you qualify for, since that sets your minimum.
Set a monthly payment you can sustain, then see what down payment gets you there.
Compare the cost of PMI against the value of keeping more cash in savings.
Check whether you qualify for down payment assistance in your state.
Keep at least three to six months of expenses in reserve after closing.

How much do buyers actually put down?

Real-world down payments are higher than the minimums but far below full price. The median down payment for all buyers reached 19% in 2025, according to the National Association of Realtors.

First-time buyers put down a median of 10%, the highest level since 1989. Repeat buyers, who often roll equity from a previous home into the next, put down a median of 23%.

Buyer type	Median down payment (2025)
First-time buyers	10%
All buyers	19%
Repeat buyers	23%

Mistakes to avoid with a down payment

The most common mistake is waiting to save 20% when a 3% to 5% loan would let you buy years sooner. In a rising market, waiting can cost more than PMI ever would.

The opposite error is draining every dollar into the down payment and closing with no reserves. A repair or job gap in the first year can turn that into a crisis.

A third is overlooking closing costs, which typically add another 2% to 5% of the price on top of the down payment.

Key takeaways

You can buy a house with 0% to 3.5% down depending on the loan type.
Conventional loans start at 3%, FHA at 3.5%, and VA and USDA at 0% for eligible buyers.
A good down payment keeps your payment affordable without wiping out your savings.
Twenty percent down removes private mortgage insurance but is not required.
Median down payments in 2025 were 10% for first-time buyers and 19% for all buyers, per NAR.

Frequently asked questions

Do you need 20% down to buy a house?

No, 20% is optional. Conventional loans allow 3% down, FHA loans 3.5%, and VA and USDA loans nothing down for eligible buyers.

Is 10% a good down payment on a house?

Yes, 10% matches the 2025 median for first-time buyers and keeps your payment lower than a minimum down payment. You will still pay private mortgage insurance until you reach 20% equity.

How much do first-time home buyers put down?

The median first-time buyer put down 10% in 2025, according to NAR. The minimum is far lower, at 3% for conventional and 3.5% for FHA loans.

What is the lowest down payment you can make on a house?

Eligible VA and USDA borrowers can buy with 0% down. Among widely available options, conventional loans go as low as 3%.

Does a bigger down payment lower your mortgage payment?

Yes, a larger down payment means a smaller loan and a lower monthly payment. Crossing 20% also removes private mortgage insurance on a conventional loan.

Seeing the payment behind each down payment amount turns an abstract percentage into a real monthly number. Comparing mortgage lenders side by side shows what a given down payment buys before you commit.