Is 20% down payment required for a mortgage?

No, 20% down is not required. Many buyers put down 3-5% on conventional loans or 3.5% on FHA loans. VA and USDA loans allow 0% down. However, putting down less than 20% on a conventional loan requires private mortgage insurance (PMI).

What is the minimum down payment for a house?

The minimum depends on your loan type: 0% for VA and USDA loans, 3% for conventional (first-time buyers), 3.5% for FHA loans, and 10-20% for jumbo loans.

Can I use gift money for a down payment?

Yes, most loan programs allow gift funds from family members for the down payment. FHA loans allow 100% of the down payment to be a gift. Conventional loans have similar allowances. You will need a signed gift letter.

How long does it take to save for a down payment?

That depends on your savings rate and target. Saving $500/month, you could accumulate $12,250 (3.5% on $350K) in about 25 months. Many buyers also use down payment assistance programs to reduce the timeline.

Down Payment Guide: How Much Do You Really Need?

Learn how down payments work, how much you need for different loan types, and strategies to save faster. Plus: down payment assistance programs that could help.

Down Payment Requirements by Loan Type

The "20% down payment" rule is a myth — most buyers put down far less. The average first-time buyer puts down about 6%, and several programs allow 0-3.5% down. Here is what each loan type requires:

Loan Type	Min. Down Payment	$350K Home	$500K Home	PMI/MIP?
Conventional	3% (first-time) / 5%	$10,500	$15,000	Yes, until 20% equity
FHA	3.5%	$12,250	$17,500	Yes, for loan life*
VA	0%	$0	$0	No PMI (funding fee applies)
USDA	0%	$0	$0	Guarantee fee (low)
Jumbo	10-20%	$35,000-$70,000	$50,000-$100,000	Varies by lender

How Down Payment Size Affects Your Mortgage

Lower Monthly Payment

A larger down payment means a smaller loan amount, which directly reduces your monthly payment. On a $400K home, going from 5% to 20% down saves ~$530/month.

Eliminate PMI

With 20% down on a conventional loan, you avoid PMI entirely — saving $100-$300/month. With less than 20% down, PMI is required until you reach 20% equity.

Better Interest Rate

Lenders often offer slightly lower rates with larger down payments (20%+) because the loan is less risky. This can save 0.125-0.25% on your rate.

Strategies to Save for a Down Payment

Set a Specific Savings Target

Use our affordability calculator to determine your target home price, then calculate 3-20% for the down payment plus 2-5% for closing costs.

Automate Your Savings

Set up automatic transfers to a dedicated high-yield savings account. Even $500/month adds up to $6,000 in a year, $18,000 in three years.

Explore Gift Funds

FHA and conventional loans allow gift funds from family members for the entire down payment. You will need a gift letter confirming no repayment is expected.

Look Into Assistance Programs

Many states and cities offer down payment assistance (DPA) grants or forgivable loans. See our buyer programs guide for available options.

Down Payment Sources Lenders Accept