Most house down payments in the U.S. fall between 3% and 20% of the purchase price — that’s roughly $10,500 to $70,000 on a typical $350,000 home. The median down payment for first-time buyers sits around 8–10%, while repeat buyers put down closer to 19%. The old “you must put 20% down” rule is a myth; low-down-payment loans have been mainstream for decades.
Typical Down Payment Ranges by Loan Type
Your minimum down payment depends mostly on the loan program you use, not on some universal rule:
- Conventional loans: as low as 3% for qualified first-time buyers; 5–20% is typical. Put down less than 20% and you’ll pay private mortgage insurance (PMI).
- FHA loans: 3.5% minimum with a credit score of 580 or higher. A staple for buyers with thinner credit files.
- VA loans: 0% down for eligible veterans, service members, and qualifying surviving spouses. No monthly mortgage insurance either.
- USDA loans: 0% down for homes in eligible rural areas, with income limits.
- Jumbo loans: often 10–20% down since they exceed conforming loan limits.
That 20% figure people fixate on? It’s the threshold for skipping mortgage insurance on a conventional loan — not a requirement to buy. Waiting years to save 20% while home prices rise can cost you more than the PMI ever would.
What Down Payments Look Like in Dollars
Percentages are abstract; dollars make decisions. On a $350,000 home — near the current national median:
- 3% down: $10,500
- 5% down: $17,500
- 10% down: $35,000
- 20% down: $70,000
And remember, the down payment isn’t your total cash to close. Closing costs typically run another 2–5% of the price — lender fees, title insurance, prepaid taxes and insurance. If you’re tallying what you’ll need, our guide to how much a property survey costs covers one of those often-forgotten line items, and if you’re setting up an estate plan alongside the purchase, see what a living trust costs too.
The PMI Question
Put down less than 20% on a conventional loan and you’ll pay private mortgage insurance — typically $30–$70 per month for every $100,000 borrowed. It protects the lender, not you, which makes it feel like money down the drain. But here’s the honest math: PMI is temporary (it drops off once you hit 20% equity), while home price appreciation during the years you’d spend saving is permanent and often much larger. Most buyers who run the numbers come out ahead buying sooner with PMI.
Down Payment Assistance: Money You Might Not Know Exists
Thousands of state and local programs offer down payment help — grants you never repay, forgivable second loans, or deferred-payment loans — and they’re criminally underused. Many target first-time buyers (usually defined as anyone who hasn’t owned in three years), with income and price limits that are more generous than people assume. A good lender or a HUD-approved housing counselor can match you to programs in your area in a single conversation. Ask before you assume you don’t qualify.
How Much Should You Actually Put Down?
There’s a real tension here. More down means a smaller loan, lower monthly payment, no PMI, and instant equity. But draining your emergency fund to hit 20% is worse than putting 10% down and keeping a cash cushion — the water heater doesn’t care about your equity position. A sensible target for most first-time buyers: put down what the loan requires plus a bit extra, and keep three to six months of expenses liquid. The “right” down payment is the one that gets you the house without leaving you broke in it.
FAQs
Do I really need 20% down to buy a house?
No. Conventional loans go as low as 3%, FHA loans at 3.5%, and VA and USDA loans require nothing down. The 20% figure only matters for avoiding mortgage insurance on conventional loans.
What is the average down payment for a first-time buyer?
First-time buyers typically put down around 8–10% of the purchase price, while repeat buyers average closer to 19%. On a $350,000 home, that first-time median works out to roughly $28,000–$35,000.
Can I use gift money for a down payment?
Yes, in most cases. Conventional and FHA loans allow down payment gifts from family members, though the lender will require a gift letter and a paper trail showing the money isn’t a disguised loan.
What happens to my down payment if the deal falls through?
Your earnest money deposit (separate from the down payment) may be at risk depending on your contract’s contingencies. The down payment itself is only paid at closing, so if the deal dies before then, you don’t lose it.
Is a bigger down payment always better?
Not always. A bigger down payment lowers your payment and can eliminate PMI, but not if it empties your savings. Keeping an emergency fund intact usually beats maximizing the down payment.
