Down Payment Explorer
Compare 0%, 3.5% FHA, 5%, 10%, and 20% down side-by-side — with loan type eligibility, PMI, and conforming limit flags.
FHA: $498,257 (general)
Conforming: $766,550
Above conforming = Jumbo loan
| Down % | Down Amount | Loan Amount | LTV | P&I Payment | PMI / MIP | Total Monthly | Notes |
|---|
Choosing the Right Down Payment
The "right" down payment depends on your cash reserves, loan eligibility, and risk tolerance. Here's how each major tier compares:
0% Down — VA & USDA Loans
VA loans (for veterans and active-duty service members) and USDA loans (for eligible rural areas) offer 0% down with no PMI. VA loans charge a one-time funding fee (1.25%–3.3%) that can be rolled into the loan. These are exceptional programs for those who qualify.
3.5% Down — FHA Loans
FHA loans require a minimum 3.5% down payment with a 580+ credit score (10% down for 500–579). They carry an upfront MIP of 1.75% and annual MIP of ~0.85%. As of 2023, if you put less than 10% down, FHA MIP lasts the life of the loan — a significant long-term cost.
5%–10% Down — Conventional with PMI
Conventional loans start at 3% down for first-time buyers (Freddie Mac Home Possible, Fannie Mae HomeReady). At 5–10%, you'll pay PMI but have more flexibility than FHA. PMI ends automatically at 78% LTV — unlike FHA MIP.
20% Down — No PMI (Best Practice)
The traditional gold standard. No PMI, lower monthly payment, better rates, and stronger offers in competitive markets. However, tying up $80,000+ in a home reduces liquidity — ensure you maintain 3–6 months of emergency savings.
- What is a conforming loan limit?
- Freddie Mac and Fannie Mae set annual conforming loan limits. For 2024, the baseline is $766,550 for single-family homes in most areas. Loans above this are "jumbo" loans with stricter requirements and typically higher rates.
- What is the minimum down payment for conventional loans?
- Conventional loans can go as low as 3% for qualifying first-time buyers through programs like HomeReady (Fannie Mae) and Home Possible (Freddie Mac). Standard conventional loans typically require 5% down.
- Can I use gift funds for a down payment?
- Yes — FHA allows 100% gift funds for the down payment. Conventional loans allow gifts with documentation. VA and USDA also allow gift funds. Gift fund requirements vary by loan type; consult your lender.