How Much Do You Really Need for a Down Payment on a Home?

One of the biggest questions buyers ask when thinking about purchasing a home is: “How much should I put down?” The truth is, the average down payment can vary widely based on a few important factors—including the type of loan, your location, and your personal financial situation.

Let’s break it down:

🏠 Conventional Loans

For a standard conventional loan, the typical down payment is 20% of the home’s purchase price.
Why 20%? Putting this amount down can help you avoid paying private mortgage insurance (PMI) and may even qualify you for better interest rates and loan terms. It’s a solid choice if you’ve saved up and want to keep your monthly costs low.

💡 First-Time Homebuyers

Good news—if you're buying your first home, you don’t necessarily need to hit that 20% mark. Many first-time buyers put down 5% to 10%, depending on the loan program. Conventional loans and FHA loans both offer lower down payment options, making homeownership more accessible.

🔑 FHA Loans

Backed by the Federal Housing Administration, FHA loans are a popular choice for buyers with lower credit scores or limited savings. They allow for down payments as low as 3.5%, as long as you meet certain credit score requirements. These loans can be a great stepping stone for building equity and getting into the market sooner.

👀 VA & USDA Loans

If you’re a veteran or looking to buy in a rural area, you may qualify for a VA or USDA loan—both of which offer 0% down payment options.
These are incredible programs designed to help specific groups of buyers achieve homeownership without the upfront financial burden.

💡 Pro Tip:

While a larger down payment can lower your monthly mortgage payments and reduce your interest over time, it’s not the only way to buy a home. There are many flexible options designed to meet you where you are financially.

Whether you’re putting down 3%, 10%, or 20%, what matters most is choosing the right loan program for your situation and making sure your monthly payments are comfortable for your budget.

Ready to explore your options? Let’s talk and find the perfect fit for you!