How Much Down Payment Do You Need for a House?

Ask ten people how much down payment you need for a house and most will say 20%. That figure comes from the point where conventional lenders stop charging mortgage insurance, not from any rule that says you must reach it. Most first-time buyers close with far less. The question that matters is not “what is the minimum” but “what does each level cost me every month, and how much cash should I keep back for everything else.”

This guide answers both. You will see the minimum for each loan type, what real buyers put down last year, what 3%, 10%, and 20% look like in dollars in each of the ten states we cover, and how the down payment changes the monthly bill on a $350,000 home. First, a short video on why the 20% figure is more myth than rule.

1. Minimum Down Payment for a House by Loan Type in 2026

Quick Answer: The minimum down payment for a house is 3% on a conventional loan, 3.5% on an FHA loan with a 580 credit score, 10% on FHA with a 500 to 579 score, and 0% on VA and USDA loans. Twenty percent is the point where conventional loans drop private mortgage insurance, not a requirement. The loan itself works the same way at every level, as our guide to how mortgages work explains.

Each program sets its own floor. The table shows the minimum, who qualifies for it, and what strings come attached.

Three details hide behind the percentages. Fannie Mae’s 3% programs require a homebuyer education course when every borrower is a first-time buyer. HUD confirms the FHA floor of 3.5% and points buyers to state and local down payment help. And the VA’s zero-down promise only holds when the price does not exceed the appraised value; if it does, the veteran covers the difference. Eligibility is a separate question, covered in our guides to FHA loan requirements, VA loan requirements, and USDA loan requirements.

2. The Average Down Payment on a House: What Buyers Really Put Down in 2025

Quick Answer: In 2025 the median down payment was 19% across all buyers, 10% for first-time buyers, and 23% for repeat buyers, according to the National Association of Realtors 2025 Profile of Home Buyers and Sellers. That is the highest first-time figure since 1989, yet still half the 20% rule of thumb. Savings funded most first-time purchases, and lenders read those savings during pre-approval.

The chart puts the medians next to the sources of the money. The gap between first-time and repeat buyers is really a gap in home equity: repeat buyers roll the proceeds of one house into the next.

Two more numbers from the same NAR report frame the market. First-time buyers fell to 21% of all purchases, the lowest share NAR has recorded, and their median age hit 40. Both point the same direction: the buyers who make it through are older, have saved longer, and put down more than the generation before them. That does not mean you need 10% to qualify. It means 10% is what the typical successful first-time buyer chose.

3. How Much Down Payment You Need for a House in Dollars, State by State

Quick Answer: On the typical home, a 3% down payment is about $7,500 in Ohio, $9,100 in Texas, $11,300 in Florida, and $23,200 in California. At 20% those figures become $50,000, $60,400, $75,600, and $154,700. Because the down payment is a share of price, the same rule costs three times as much in California as in Ohio, which is why the DollarVisor loans hub works state by state.

The table applies the four most common down payment levels to the typical home value in each of the ten states we cover, using the Zillow Home Value Index for July 2026 as published by the Federal Reserve Bank of St. Louis (FRED).

Remember that the down payment is only part of the cash you bring. Lender fees, title charges, and prepaid taxes and insurance come on top, so a 3% buyer in Texas should plan on well over the $9,054 in the table; our closing costs explained guide lists every line and what each one typically runs. In expensive states even the minimum is a serious sum, which is why California buyers lean hardest on assistance programs and family gifts.

4. How the Down Payment Changes Your Monthly Payment: A $350,000 Example

Quick Answer: On a $350,000 home at 6.5%, putting 3% down instead of 20% costs about $630 more per month: roughly $375 in extra principal and interest on the larger loan, plus about $255 in private mortgage insurance. The insurance goes away once you reach 20% equity, and our guide on how to get rid of PMI shows how to speed that up. The bigger loan balance stays for the life of the mortgage.

The example holds the price and the rate constant and changes only the down payment. Property taxes, homeowners insurance, and HOA dues are the same in every row, so they are left out.

Read the last column two ways. Over a year, the 3% buyer pays about $7,600 more than the 20% buyer, but the 20% buyer also tied up $59,500 more cash at closing. If that cash would otherwise sit idle, the small down payment is expensive. If the alternative is an empty emergency fund, the small down payment is the safer choice.

5. Is 20% Down Still the Right Goal?

Quick Answer: Put 20% down if you can do it and still keep three to six months of expenses in an emergency fund. If reaching 20% would drain your savings, or would take so many more years of saving that prices outrun you, a 5% to 10% down payment with mortgage insurance is the better trade. The CFPB notes that PMI protects the lender, not you, but it is also what lets you buy years earlier.

Here is how to decide, in the order that matters:

• Keep the emergency fund first. A new homeowner with no cushion is one furnace failure away from a credit card balance. How much down payment you need for a house is always the number left after that reserve is funded.
• Count closing costs before the down payment. A buyer with $30,000 saved does not have 10% down on a $300,000 home; if closing costs and prepaids run $9,000, they have 7%.
• Compare the monthly gap with the time it buys. In the Section 4 example, 10% down costs $352 a month more than 20% down. If saving the extra $35,000 would take three years, ask what prices and rent will do in those years.
• Remember PMI ends. You can ask to cancel it once the balance falls to 80% of the original value, and federal law requires the servicer to drop it at 78%. FHA insurance usually lasts the life of the loan, one reason 5% down conventional often beats FHA for good-credit buyers, as our FHA vs conventional comparison shows.
• Look at the rate, not just the insurance. Lenders price low-down-payment loans higher. Get quotes at 5%, 10%, and 20% down from the same lender and compare the whole payment.

Our view: the 20% rule made sense when the alternative was a subprime loan with a prepayment penalty. Today the 3% and 5% programs come from Fannie Mae and Freddie Mac themselves, on the same 30-year fixed structure. The cost of a small down payment is visible, capped, and temporary. The cost of waiting is not.

6. Where the Down Payment Can Come From (and What Lenders Accept)

Quick Answer: Lenders accept a down payment from your own savings, a documented gift from family, proceeds from selling a home, retirement account withdrawals or loans, and state or local assistance programs. They do not accept unsecured borrowed money, and they trace every large deposit. What they will not let you use is a seller credit; seller concessions can pay closing costs but never the down payment.

The money has to be yours, gifted, or from an approved program, and the lender will want a paper trail on all of it:

• Savings and checking. The simplest path. Expect to show two months of statements and explain any deposit that is not payroll.
• Gifts from family. Allowed on every program with a signed gift letter stating no repayment is expected. Some conventional loans want a small amount of your own money when the gift does not cover the whole down payment.
• Down payment assistance. State housing agencies and many cities offer grants, forgivable loans, or second mortgages that stack with the 3% and 3.5% programs. Compare them in our guide to first-time homebuyer programs by state.
• Retirement accounts. A 401(k) loan is not counted as debt by most lenders. A withdrawal is taxed and, before age 59 and a half, usually penalized, with a limited IRA exception for first-time buyers.
• Sale of a previous home. The main source for repeat buyers; the lender will want the settlement statement.
• A second borrower. Adding a spouse, partner, or parent can add income and assets. The two roles differ, as our guide to a co-borrower vs cosigner on a mortgage explains.

One source that does not work: a personal loan or credit card cash advance. Lenders count the new debt against you, and most programs bar unsecured borrowing for the down payment outright.

7. The Bottom Line

Quick Answer: How much down payment you need for a house depends on the loan: 3% conventional, 3.5% FHA, 0% VA or USDA. The typical first-time buyer puts down 10%, the typical repeat buyer 23%. On the typical U.S. home, 3% is about $11,200 and 20% is about $74,400, plus closing costs. Less than 20% means mortgage insurance and a bigger payment, but it can also mean buying years sooner.

Our pick for most 2026 first-time buyers: aim for 5% to 10% down on a conventional loan if your credit score is 700 or higher, keep three to six months of expenses in reserve, and plan to cancel PMI at 20% equity. Use FHA when your score is below 680 or your debt ratio is tight, and use VA or USDA whenever you qualify, because zero down with no monthly mortgage insurance beats everything else on the table.

That is how DollarVisor approaches every home-buying decision: the math shown line by line, state by state, with no lender paying for placement. The rest of the mortgage path, from pre-approval to payoff, lives in our loans hub.

8. Frequently Asked Questions

1. How much down payment do you need for a house?

The minimum down payment is 3% on a conventional loan, 3.5% on an FHA loan with a credit score of 580 or higher, 10% on FHA with a score of 500 to 579, and 0% on VA and USDA loans. Twenty percent is not required; it is the point where a conventional loan no longer needs private mortgage insurance.

2. What is the average down payment on a house?

According to the National Association of Realtors 2025 Profile of Home Buyers and Sellers, the median down payment was 19% for all buyers, 10% for first-time buyers, and 23% for repeat buyers. Most first-time buyers used personal savings; about a quarter drew on retirement or investment accounts and about a fifth received family help.

3. Can you buy a house with no money down?

Yes, if you qualify for a VA loan as an eligible veteran, service member, or surviving spouse, or for a USDA guaranteed loan on a home in an eligible rural area with household income at or below 115% of the area median. Both require the home to be your primary residence. Everyone else needs at least 3% to 3.5% down, though assistance programs can supply part of it.

4. Is it better to put 20% down or keep the money?

Put 20% down only if you can still keep three to six months of expenses in reserve after closing costs. A smaller down payment adds mortgage insurance and a larger payment, but conventional PMI can be canceled at 20% equity. Draining savings to avoid PMI leaves no cushion for repairs or a job loss, which is the costlier risk.

5. Can a family member pay my down payment?

Yes. Conventional, FHA, VA, and USDA loans all allow gift funds from a relative, as long as the donor signs a gift letter stating that no repayment is expected and the lender can trace the transfer. Some conventional loans require a small contribution of your own money when the gift does not cover the entire down payment.