The down payment on a $200,000 house ranges from $0 to $60,000, depending on the loan type you choose

The amount you put down is not fixed. A conventional loan typically requires 3% to 20% down, which on a $200,000 house means $6,000 to $40,000. An FHA loan allows as little as 3.5% down ($7,000). A VA loan or USDA loan may require nothing down if you meet the program requirements. The trade-off is clear: put down less money now, pay more in interest and monthly mortgage insurance later. Put down more, and your monthly payment drops.

Your actual minimum depends on three things: which loan program you use, what your credit score is, and what the lender will accept. A lender will not give you a loan they think you cannot repay, no matter what the program technically allows. If your credit is below 620, conventional loans with 3% down may not be available to you, even though the program exists. If you have unstable income or high existing debt, a lender may require 10% or 15% down instead of the minimum.

Key Takeaways

  • Conventional loans on a $200,000 house require between $6,000 and $40,000 down, with 3% to 5% being the most common starting point for buyers with decent credit.
  • FHA loans allow 3.5% down ($7,000), but you will pay mortgage insurance for the life of the loan unless you refinance later.
  • VA and USDA loans may require zero down if you meet military service or rural property requirements, but approval depends on income and debt levels.
  • Your lender will set a minimum based on your credit score, income stability, and existing debts — the program minimum is not always what you will actually get.
  • A larger down payment lowers your monthly payment and removes the need for mortgage insurance, but it uses cash you might need for closing costs, inspections, and repairs.

How down payment percentage translates to actual dollars

On a $200,000 purchase price, each percentage point of down payment equals $2,000. A 3% down payment is $6,000. A 5% down payment is $10,000. A 10% down payment is $20,000. A 20% down payment is $40,000. These numbers are straightforward, but the choice between them is not, because the percentage you put down affects what you pay every month for the next 15 to 30 years.

If you put 3% down on a $200,000 house at 7% interest over 30 years, your principal and interest payment is roughly $1,330 per month, plus mortgage insurance of $150 to $200 per month. If you put 20% down, your principal and interest payment drops to about $1,064 per month, and mortgage insurance disappears entirely. The difference is $300 to $400 per month, or $3,600 to $4,800 per year. Over 10 years, that is $36,000 to $48,000 in extra cost.

But that math only works if you have the $34,000 extra sitting in savings and you do not need it for anything else. If putting down 20% means you have no emergency fund, no money for a home inspection, and no buffer for repairs after closing, then 3% or 5% down is the right choice, even if it costs more over time.

Conventional loans: the 3% to 20% range

A conventional loan is a mortgage backed by Fannie Mae or Freddie Mac, the two largest mortgage companies in the United States. They set the rules for what lenders can offer. The minimum down payment is 3%, but that comes with conditions. Your credit score must be at least 620, and often lenders want 640 or higher. Your debt-to-income ratio — the total of all your monthly debt payments divided by your gross monthly income — must be below 43%, sometimes lower.

At 3% down on a $200,000 house, you borrow $194,000. Because you are borrowing more than 80% of the home's value, you will pay private mortgage insurance (PMI). This is insurance that protects the lender if you stop paying. It costs between 0.5% and 1.5% of the loan amount per year, paid as part of your monthly mortgage payment. On a $194,000 loan, that is roughly $80 to $240 per month. You can remove PMI once you have paid the loan down to 80% of the home's value, which takes years.

If you put 5% down ($10,000), you borrow $190,000, and PMI is still required but slightly lower. At 10% down ($20,000), you borrow $180,000, and PMI is lower still. At 20% down ($40,000), you borrow $160,000, and PMI disappears. Most first-time buyers land somewhere between 3% and 10% down, depending on how much they have saved and how much their lender requires.

FHA loans: 3.5% down with mortgage insurance you cannot remove

An FHA loan is backed by the Federal Housing Administration and is designed for buyers with lower credit scores or less savings. The minimum down payment is 3.5% ($7,000 on a $200,000 house), and your credit score can be as low as 580. Your debt-to-income ratio can go up to 50% in some cases. For buyers who cannot save 5% or 10%, this is often the only path forward.

The catch is mortgage insurance. FHA loans require both an upfront mortgage insurance premium (UFMIP), which is 1.75% of the loan amount and is usually rolled into your loan, and an annual mortgage insurance premium (MIP) that you pay monthly. On a $193,000 loan (after 3.5% down), the UFMIP is about $3,378, added to what you owe. The annual MIP is roughly 0.55% of the loan per year, or about $106 per month. Unlike conventional PMI, FHA mortgage insurance stays on the loan for the entire 30 years if you put down less than 10%. If you put down 10% or more, it drops off after 11 years.

This means an FHA loan with 3.5% down costs more over time than a conventional loan with 5% down, but it is available to people who cannot save 5%. The trade-off is explicit: lower barrier to entry, higher long-term cost.

VA and USDA loans: zero down if you meet the requirements

A VA loan is available to military members, veterans, and some surviving spouses. There is no down payment required. You do not pay mortgage insurance. The interest rate is often lower than conventional loans. On a $200,000 house, this means you borrow the full $200,000 with no cash out of pocket at closing (except closing costs themselves, which the seller can pay in some cases).

The catch is that you must meet the may be able to access requirements. You need a Certificate of may be able to access from the Department of Veterans Affairs, which you can request online through VA.gov. You need a credit score of at least 580 to 620, depending on the lender. Your debt-to-income ratio must be below 41% in most cases. If you meet these, a VA loan is the cheapest option available.

A USDA loan is for rural properties and is available to buyers with low to moderate income who have no recent credit problems. There is no down payment required, and there is no mortgage insurance. The property must be in an may be able to access rural area, which you can check on the USDA website. Like VA loans, USDA loans have income limits and credit requirements, but if you may have access to and the house is in the right location, zero down is real.

What down payment actually costs you at closing

Your down payment is only part of what you pay at closing. You also pay closing costs, which include the loan origination fee, appraisal, title search, title insurance, homeowners insurance, property taxes, and attorney fees. Closing costs typically run 2% to 5% of the loan amount. On a $200,000 house, that is $4,000 to $10,000 on top of your down payment.

If you put 3% down ($6,000) and closing costs are $6,000, you need $12,000 in cash at closing. If you put 5% down ($10,000) and closing costs are $7,000, you need $17,000. Some lenders allow you to roll closing costs into the loan, which means you borrow more and pay interest on them, but it reduces the cash you need upfront. Some sellers will pay part or all of your closing costs as part of the negotiation, which also reduces what you need to bring.

Before you decide on a down payment percentage, get a Loan Estimate from your lender. This is a form that shows your loan amount, interest rate, monthly payment, and all closing costs. It is free, and lenders are required to send it within three business days of your process. This is the only way to know the true total cost of your down payment choice.

How to decide between different down payment amounts

Start with what you have in savings right now. Subtract what you need for closing costs (ask your lender for an estimate). What is left is what you can put down. If that is 3%, use 3%. If that is 10%, use 10%. Do not drain your savings to hit a higher percentage, because you will need money for inspections, appraisals, and repairs after you buy.

If you have more than one option, compare the monthly payment and total interest cost for each. A Loan Estimate will show you the monthly payment. To see total interest, multiply the monthly payment by 360 (for a 30-year loan) and subtract the loan amount. On a $194,000 loan at 7% over 30 years, total interest is about $259,000. On a $180,000 loan at 7% over 30 years, total interest is about $239,000. The difference is $20,000, which is less than the $14,000 extra you put down, so 10% down costs less overall than 3% down — but only if you keep the loan for the full 30 years, which most people do not.

If you plan to move or refinance within 7 to 10 years, the lower down payment often makes more sense, because you will not stay long enough to recoup the extra interest cost. If you plan to stay 15 years or longer, a higher down payment usually saves money in the end.

Frequently Asked Questions

Can I borrow money from family for my down payment?

Yes, but your lender needs to know about it. If the money is a gift, the lender will ask for a signed letter from the family member stating it does not need to be repaid. If it is a loan, you must disclose it as a debt, which increases your debt-to-income ratio and may lower how much you can borrow. Most lenders prefer gifts over loans.

What if I only have $3,000 saved for a $200,000 house?

An FHA loan with 3.5% down requires $7,000, so you are short. You can wait and save more, or you can look at less expensive homes. Some lenders offer down payment information programs through nonprofits or state housing agencies, but these vary by location and have their own requirements. Contact your local housing authority or call 211 to ask what programs exist in your area.

Does a larger down payment may provide loan approval?

No. A lender will deny you if your credit score is too low, your income is too unstable, or your debt-to-income ratio is too high, regardless of down payment size. A larger down payment helps, but it does not override other problems. Get pre-approved before you make an offer, so you know what you actually may have access to for.

Can I put down less than 3% on a conventional loan?

Not through a standard conventional loan. Some lenders offer portfolio loans or bank-specific programs with 1% or 2% down, but these are rare, have higher interest rates, and require excellent credit and income. For most buyers, 3% is the conventional minimum.

What happens if the house appraises for less than the purchase price?

If you agreed to pay $200,000 but the appraisal comes in at $190,000, the lender will only loan 80% to 95% of the appraised value, not the purchase price. You either need to renegotiate the price, put more money down to make up the difference, or walk away. This is why a down payment cushion matters — it protects you if the appraisal is lower than expected.