The down payment on a $100,000 house ranges from $3,000 to $20,000, depending on the loan type and your credit profile
The amount you put down is not fixed. A conventional loan typically requires 3 to 20 percent down. An FHA loan requires 3.5 percent minimum. A VA loan (if you are may be able to access) requires zero down. On a $100,000 purchase, that means anywhere from $0 to $20,000 upfront, before closing costs.
The lower your down payment, the higher your monthly payment and the more interest you pay over the life of the loan. You also pay private mortgage insurance (PMI) if you put down less than 20 percent on a conventional loan — typically 0.5 to 1 percent of the loan amount per year, added to your monthly payment. That cost disappears once you reach 20 percent equity in the home.
Your credit score, debt-to-income ratio, and savings history all affect what down payment a lender will actually accept. A score below 620 may lock you out of conventional loans entirely. A score of 620 to 679 usually requires a larger down payment to offset the risk. A score above 740 opens the lowest down payment options.
Key Takeaways
- Conventional loans on a $100,000 house require $3,000 to $20,000 down, depending on your credit score and lender requirements.
- FHA loans require $3,500 down minimum (3.5 percent), but you pay mortgage insurance for the life of the loan regardless of equity.
- VA loans require zero down if you have a Certificate of may be able to access, making them the lowest upfront cost option for military-connected borrowers.
- Putting down less than 20 percent on a conventional loan triggers PMI, which adds $50 to $150 per month to your payment on a $100,000 purchase.
- Your credit score, not just the purchase price, determines whether a lender will accept a 3 percent down payment or require 5 to 10 percent.
Conventional loans: 3 to 20 percent down
A conventional loan is a mortgage not backed by a government agency. Lenders set their own rules within broad industry standards. Most will accept 3 percent down on a $100,000 house ($3,000), but only if your credit score is 680 or higher and your debt-to-income ratio is below 43 percent. Debt-to-income means your total monthly debt payments (car loans, credit cards, student loans, plus the new mortgage) divided by your gross monthly income.
If your score is between 620 and 679, lenders typically require 5 to 10 percent down ($5,000 to $10,000). If your score is below 620, most conventional lenders will not work with you at all. A score of 740 or higher may unlock 3 percent down with better interest rates and no requirement to pay PMI at a lower threshold.
Once you put down 20 percent ($20,000), you avoid PMI entirely. The tradeoff is obvious: you need $20,000 in cash upfront. For a $100,000 house, that is a significant barrier for many buyers. The middle ground — 10 to 15 percent down — costs $10,000 to $15,000 and keeps PMI manageable while preserving cash for closing costs and emergencies.
FHA loans: 3.5 percent down, mortgage insurance for life
FHA loans are backed by the Federal Housing Administration and designed for buyers with lower credit scores or smaller down payments. The minimum down payment is 3.5 percent. On a $100,000 house, that is $3,500. Your credit score can be as low as 580, though some lenders require 620.
The catch is mortgage insurance. FHA loans require two types: an upfront mortgage insurance premium (UFMIP) of 1.75 percent, rolled into your loan, and an annual mortgage insurance premium (MIP) that stays on your loan for the full term, even after you reach 20 percent equity. On a $100,000 house with $3,500 down, you are borrowing $96,500 plus $1,689 in UFMIP, for a total loan of $98,189. Your monthly payment will be higher than a conventional loan at the same rate.
FHA is useful if you have limited savings or a lower credit score, but run the numbers with a lender. Sometimes putting down 5 to 10 percent on a conventional loan, paying PMI for a few years, then refinancing once your equity hits 20 percent costs less overall than an FHA loan with lifetime mortgage insurance.
VA loans: zero down if you are may be able to access
If you are a veteran, active-duty service member, or surviving spouse, a VA loan requires zero down payment. You need a Certificate of may be able to access from the VA, which you can request online through VA.gov or through your lender. The VA does not set a maximum loan amount for a $100,000 house, so you can borrow the full purchase price.
VA loans do not require PMI. They do charge a funding fee — typically 2.3 percent for first-time users with no down payment, rolled into the loan. On a $100,000 purchase, that is $2,300 added to your loan balance. The fee is waived if you receive VA disability compensation rated at 0 percent or higher.
VA loans are among the most favorable terms available: no down payment, no PMI, lower interest rates than conventional loans, and no prepayment penalty. If you are may be able to access, this is usually the lowest-cost path to homeownership.
USDA loans: zero down in rural areas
USDA loans are for buyers in rural areas (not suburbs of major cities) with household income at or below 115 percent of the area median. Like VA loans, they require zero down. Your credit score must be at least 580, though 640 or higher opens better terms.
USDA loans charge a may provide fee (1 percent upfront, rolled into the loan) and an annual fee of 0.35 percent. On a $100,000 house, the upfront fee is $1,000. There is no PMI. The trade-off is location: the property must be in a USDA-may be able to access rural area. You can check may be able to access on the USDA website by address.
If your $100,000 house is in a may have access to rural area and your income fits the limit, USDA loans offer zero-down financing with costs lower than FHA. The main barrier is geography, not credit or savings.
What down payment actually costs you over time
The difference between a 3 percent and 20 percent down payment on a $100,000 house is not just the $17,000 in cash. It is the interest and insurance you pay every month for years.
| Down Payment | Loan Amount | Monthly Payment (est.)* | PMI (if applicable) | Total Monthly Cost |
|---|---|---|---|---|
| 3% ($3,000) | $97,000 | $515 | $65–$85 | $580–$600 |
| 10% ($10,000) | $90,000 | $480 | $40–$55 | $520–$535 |
| 20% ($20,000) | $80,000 | $427 | $0 | $427 |
*Estimates assume a 7 percent interest rate, 30-year term, and do not include property taxes, insurance, or HOA fees. Your actual payment will vary based on your credit score, lender, and local rates.
Over 30 years, the 3 percent down option costs roughly $21,600 in PMI alone. The 10 percent option costs roughly $14,400. The 20 percent option costs zero in PMI but requires $20,000 upfront. If you have the cash, 20 percent down saves money. If you do not, 10 percent down is often the practical middle ground.
Closing costs are separate from down payment
Down payment and closing costs are two different expenses. Your down payment is what you put toward the purchase price. Closing costs are fees for the loan itself: appraisal, title search, underwriting, attorney fees, and recording fees. On a $100,000 house, closing costs typically run $2,000 to $5,000 (2 to 5 percent of the purchase price).
Some lenders allow you to roll closing costs into the loan, which means you do not pay them upfront but you pay interest on them over 30 years. Others require you to pay them at closing. Ask your lender upfront which costs are included in the loan estimate and which you must bring to closing in cash.
Plan for both: down payment plus closing costs. If you are putting 3 percent down ($3,000), you also need $2,000 to $5,000 for closing. That is $5,000 to $8,000 total out of pocket before you get the keys. Many first-time buyers underestimate this and run short on cash.
Frequently Asked Questions
Can I borrow my down payment from family or a friend?
Most lenders allow a gift from a family member, but not a loan. If you borrow the money, the lender will count it as debt on your debt-to-income ratio, which may disqualify you or require a larger down payment. If it is a true gift with no repayment expected, get a signed gift letter from the family member stating the amount and that it does not need to be repaid.
What if I only have $2,000 saved for a $100,000 house?
You have three paths: save more, look at a less expensive house, or explore FHA or USDA loans if you may have access to. FHA requires $3,500 minimum (3.5 percent), so you would need to save another $1,500. USDA requires zero down but only in rural areas. A conventional loan at 3 percent requires $3,000 plus closing costs, so you would be short.
Does a larger down payment lower my interest rate?
Yes, typically. A larger down payment signals lower risk to the lender, so you may receive a rate 0.25 to 0.5 percent lower than a buyer putting 3 percent down. On a $100,000 loan, that difference adds up to $20 to $40 per month. Ask your lender for rate quotes at different down payment levels to see the actual savings.
Can I put down less than 3 percent?
Conventional loans rarely go below 3 percent. Some lenders offer 2 percent down programs, but they are uncommon and usually require a credit score above 700 and a debt-to-income ratio below 36 percent. FHA at 3.5 percent and VA at zero are more common alternatives if you have less cash.
What happens if I pay a larger down payment later?
You can make extra payments toward principal at any time without penalty on most mortgages. This reduces the loan balance and the interest you pay over time, but it does not remove PMI retroactively. PMI drops off once your equity reaches 20 percent through a combination of down payment and principal paydown, but you have to request it in writing once you hit that threshold.