Down Payment on a House: How Much You Really Need

The down payment on a house can be as low as 0% to 3.5% of the price, depending on the loan. FHA loans need at least 3.5% down with a credit score of 580 or higher. Fannie Mae conventional loans can go as low as 3%. VA and USDA loans can need no down payment at all for buyers who qualify. Putting 20% down is common, but it is not required for most buyers.

So the real question is not ""do I have 20%?"" It is ""which loan fits me, and what does it ask for?""

How much is a down payment on a house?

A down payment is the part of the price you pay up front. The loan covers the rest.

Here is what each major loan type asks for, from the primary sources, checked Oct. 13, 2026:

FHA: at least 3.5% of the adjusted value with a credit score of 580 or higher. With a score between 500 and 579, the loan is limited to 90% of the value, which means at least 10% down (HUD Handbook 4000.1, last revised Aug. 12, 2026).
Conventional (Fannie Mae): as low as 3% down. Fannie Mae's 97% loan-to-value FAQ (updated June 5, 2024) says a standard 97% loan needs at least one first-time home buyer. Its HomeReady loan does not.
VA: ""No down payment as long as the sales price isn't higher than the home's appraised value,"" according to VA.gov (last updated Jan. 7, 2026).
USDA: ""100% financing"" for those who qualify, according to USDA Rural Development. Income cannot be above 115% of the area's median household income, and the home must be in an eligible area.

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What is the average down payment on a house?

The National Association of Realtors' 2025 Profile of Home Buyers and Sellers, released Nov. 4, 2025, found the median down payment was 19% for all buyers. It was 10% for first-time buyers and 23% for repeat buyers. The survey covered purchases from July 2024 to June 2025.

That gap makes sense. Repeat buyers often bring money from the home they sold. First-time buyers usually start from savings.

So if you are buying your first home, 10% was the typical number in that survey. But the typical number is not the minimum.

How much is 3%, 3.5%, 10% or 20% down?

The table uses a clearly labelled EXAMPLE price of $400,000. It is not a real home price. It just shows the math.

Down payment	EXAMPLE on a $400,000 home	Loan amount	Loan types that allow it
0%	$0	$400,000	VA, USDA (if eligible)
3%	$12,000	$388,000	Fannie Mae 97% options
3.5%	$14,000	$386,000	FHA (580+ score)
10%	$40,000	$360,000	FHA (500-579 score), conventional
20%	$80,000	$320,000	Conventional

FHA loans can add the upfront mortgage insurance premium to the loan amount, so your final FHA loan can be a bit higher than the table shows.

Remember the down payment is not the only cash you need. You will also have closing costs and prepaid items like taxes and insurance.

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Do you need 20% down to buy a house?

Twenty percent is a choice, not a rule, for most buyers.

What 20% does change is mortgage insurance. The Consumer Financial Protection Bureau says you ""might be required to buy"" private mortgage insurance ""if you take out a conventional loan with a down payment of less than 20 percent."" PMI adds to your monthly payment. Our guide to what PMI is explains how it works and how it can come off.

VA.gov says VA purchase loans have ""no need for private mortgage insurance (PMI) or mortgage insurance premiums (MIP),"" though you may need to pay the VA funding fee.

So the trade-off is simple. A smaller down payment gets you in sooner. A bigger one can mean a smaller loan and less or no mortgage insurance.

Can I use gift money or help for my down payment?

Often, yes.

Conventional: Fannie Mae says ""gifts, grants, and Community Seconds can be used as a source of funds for down payment and closing costs."" For one-unit homes, it sets no minimum contribution from your own funds on its 97% options.
FHA: HUD's handbook has its own gift rules. Your lender will ask for a gift letter that shows the donor, the amount and that no repayment is required.
Down payment assistance: Many states and counties run programs. If you are buying in Florida, see our guide to Florida down payment assistance programs.

One thing that cannot pay your down payment: help from the seller or builder. Fannie Mae's Selling Guide (B3-4.1-02) says it ""does not permit IPCs to be used to make the borrower's down payment."" IPCs are interested party contributions, which include builder credits.

When do you pay the down payment on a new-construction home?

With a resale home, you usually bring your down payment to closing.

With new construction, the timing has an extra step. Builders often ask for a deposit when you sign the contract. Ask the builder in writing how that deposit is held and how it is credited at closing. Our guide to the earnest money deposit on new construction covers the questions to ask.

What this means for new-construction buyers

New-construction buyers can use the same loans as anyone else: FHA, conventional, VA and USDA where eligible. Your down payment choice also shapes how much builder help you can use, because each loan caps seller and builder contributions differently.

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A simple plan:

Get pre-approved first. Ask the lender to show you two or three down payment options side by side.
Ask about mortgage insurance for each option, not just the rate.
Keep cash for closing costs and moving, not only the down payment.
Check any builder incentive in writing, and ask your lender if it fits your loan's limits.
Do not drain your savings. Lenders may want to see money left after closing.

Builder incentive amounts change often, so we do not list them here. Call 561-704-0091 for today's numbers on the communities we list.

Common Questions

What is the minimum down payment on a house?

It depends on the loan. VA and USDA loans can need no down payment for buyers who qualify. Fannie Mae conventional options go as low as 3%, and FHA needs 3.5% with a credit score of 580 or higher.

What is the average down payment for a first-time buyer?

The National Association of Realtors' 2025 Profile of Home Buyers and Sellers found a median down payment of 10% for first-time buyers. The median for repeat buyers was 23%.

Do I need 20% down to avoid PMI?

On a conventional loan, the CFPB says you might be required to buy private mortgage insurance with less than 20% down. VA loans do not require PMI, though a VA funding fee may apply.

How much is 3.5% down on a house?

On an example \$400,000 price, 3.5% is \$14,000. That is the FHA minimum for borrowers with a credit score of 580 or higher.

Can a builder pay my down payment?

No. Fannie Mae does not allow interested party contributions, which include builder credits, to make the borrower's down payment. Builder help can go toward closing costs within each loan's limits.

Can I use a gift for my down payment?

Usually, yes. Fannie Mae allows gifts, grants and Community Seconds for the down payment and closing costs. FHA also allows gifts, and your lender will ask for a gift letter.

Ready to take the next step?

Call 561-704-0091 to talk with a National House Search specialist, or Schedule a visit.