What is a Down Payment?

A down payment is the amount of a home’s purchase price that the buyer pays at closing. It represents the initial equity in your home, or the amount of your home that you own outright. The rest of the purchase price is covered with your mortgage.

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You can get a conventional mortgage with as little as 3% down, and some government-backed mortgages don’t require a down payment. In 2025, the median down payment for all homebuyers was 19%, while first-time buyers put down a median of 10%, according to the National Association of Realtors.

Benefits of Making a Larger Down Payment

While you need not put down 20%, making a larger down payment means having more equity — and often a lower mortgage rate. And if you put down 20% or more, you won’t have to pay for mortgage insurance. This can save you a significant amount of money each month.

For example, if you’re buying a $400,000 home and putting 10% down, you’ll take out a $360,000 mortgage. Your down payment will be $40,000. This is your home equity. You’re not required to put down 20%, and many buyers don’t. But there are good reasons to put down more than the minimum if you can.

Minimum Down Payment Requirements

Lenders’ minimum down payment requirements are based on the type of mortgage you choose. While you can pay only the minimum, you can always put down more if your budget allows.

Minimum down payment

• Conventional, conforming loan: 3%
• Jumbo loan: 10%
• Second home or investment property loan: 10% to 25%

Conventional loan: 3%
Most lenders allow borrowers to put as little as 3% down on a conventional loan for a primary residence. However, not everyone qualifies for the lowest possible down payment amount. The amount you must put down will depend on your:

• Credit score
• Debt-to-income ratio (DTI)
• Savings and other assets
• Home price

Jumbo loan: 10%
Jumbo loans are a type of conventional mortgage for higher-priced properties. In 2026, homes that cost more than $832,750 require a jumbo loan in most markets, though in high-cost areas, the limit may be as high as $1,249,125. Because of their size, jumbo loans typically require 10% down or more.

FHA loan: 3.5%
If your credit score is at least 580, you can get an FHA loan for as little as 3.5% down. If you have a credit score between 500 and 579, you can still qualify, but you’ll need to put down 10%. No matter how large your down payment on an FHA loan, though, you’ll be required to pay a mortgage insurance premium (MIP).

VA loan or USDA loan: No down payment required
Both the Department of Veterans Affairs and the Department of Agriculture back zero-down-payment loans for certain homebuyers. VA loans are available to qualifying members of the armed forces, veterans, and their surviving spouses, while USDA loans are available to borrowers purchasing homes in designated rural areas. Neither loan program requires mortgage insurance. However, with VA loans, you’ll pay a one-time funding fee, which ranges from 1.25% to 3.3%. USDA loans have an upfront guarantee fee of 1% of the loan amount and an annual fee of 0.35% of the average annual loan balance.