The down payment on a $300,000 house ranges from $9,000 to $90,000, depending on the loan type and your lender's requirements

The amount you put down is not fixed. It depends on which mortgage program you use, what your credit looks like, and what your lender will accept. A conventional loan typically requires 3% to 20% down. An FHA loan requires 3.5% down. A VA loan (if you may have access to) requires 0% down. On a $300,000 purchase, that means anywhere from nothing to $60,000 or more.

The down payment you choose affects your monthly payment, how much interest you pay over the life of the loan, and whether you pay mortgage insurance. A larger down payment lowers your monthly cost and removes the insurance requirement. A smaller down payment lets you buy sooner with less cash on hand, but costs more per month.

Your lender will also ask for a down payment large enough that the loan itself is not too risky for them. This is called the loan-to-value ratio, or LTV. On a $300,000 house, a lender might refuse to lend more than 97% of the purchase price, which means you must put down at least 3%. Another lender might require 10% down. Shop around, because this number varies.

Key Takeaways

  • Conventional loans on a $300,000 house typically require 3% to 20% down, which is $9,000 to $60,000.
  • FHA loans require 3.5% down ($10,500) but charge mortgage insurance for the life of the loan unless you put down 10% or more.
  • VA loans require 0% down if you are a veteran or active-duty service member, though you will pay a funding fee instead.
  • Putting down less than 20% on a conventional loan means you pay private mortgage insurance (PMI) until you reach 20% equity in the home.
  • Your credit score, debt-to-income ratio, and savings history affect which down payment amounts lenders will actually offer you.

Conventional loans: 3% to 20% down

A conventional loan is a mortgage not backed by a government agency. Fannie Mae and Freddie Mac set the rules for most conventional loans. On a $300,000 house, they allow down payments as low as 3%, which is $9,000. At 3% down, you borrow $291,000.

Most lenders will not go below 5% down unless your credit score is 740 or higher and your debt-to-income ratio is below 43%. At 5% down on $300,000, you put down $15,000 and borrow $285,000. At 10% down, you put down $30,000 and borrow $270,000. At 20% down, you put down $60,000 and borrow $240,000.

If you put down less than 20%, you pay private mortgage insurance (PMI). This is an extra monthly cost that protects the lender if you stop paying. On a $300,000 house with 5% down, PMI typically runs $150 to $250 per month. With 10% down, it drops to $100 to $150 per month. PMI stays on your loan until you have paid down the balance to 80% of the original purchase price, or until you refinance.

FHA loans: 3.5% down with mortgage insurance

An FHA loan is backed by the Federal Housing Administration. On a $300,000 house, FHA requires 3.5% down, which is $10,500. You borrow $289,500. FHA loans are easier to get than conventional loans if your credit is below 640 or your debt-to-income ratio is above 50%.

The catch is mortgage insurance. FHA charges an upfront mortgage insurance premium (UFMIP) of 1.75% of the loan amount, added to your loan balance. On a $289,500 loan, that is about $5,066. You also pay an annual mortgage insurance premium (MIP) every month for the life of the loan. On a $300,000 house with 3.5% down, MIP runs roughly $200 to $250 per month.

If you put down 10% or more on an FHA loan, the annual mortgage insurance premium drops off after 11 years. If you put down less than 10%, you pay it for the entire loan term. On a 30-year mortgage, that adds up to tens of thousands of dollars.

VA loans: 0% down for veterans

If you are a veteran, active-duty service member, or surviving spouse, you may be able to get a VA loan with 0% down on a $300,000 house. You borrow the full $300,000. VA loans have no mortgage insurance requirement.

Instead of mortgage insurance, VA charges a funding fee. For a first-time VA loan with 0% down, the funding fee is 2.3% of the loan amount. On a $300,000 loan, that is $6,900, added to your loan balance. If you have a service-connected disability rating, you may not pay a funding fee at all.

VA loans typically have lower interest rates than conventional or FHA loans because the VA guarantees a portion of the loan to the lender. Your monthly payment is often lower even though you put down nothing.

USDA loans: 0% down for rural properties

If the $300,000 house is in a rural area, you may be able to get a USDA loan with 0% down. USDA loans are backed by the U.S. Department of Agriculture and are designed for people buying in areas outside cities and suburbs.

USDA charges a may provide fee instead of mortgage insurance. The upfront may provide fee is 1% of the loan amount, added to your balance. The annual may provide fee is roughly 0.35% per year. On a $300,000 loan, the upfront fee is $3,000 and the annual fee is about $105 per month.

USDA loans have income limits. For a family of four, the limit varies by county but typically ranges from $80,000 to $130,000 per year. Check the USDA Rural Development website to see if your county qualifies and what the income limit is.

How your credit score and debt affect your down payment options

Your credit score and debt-to-income ratio determine which down payment amounts lenders will offer. A credit score of 740 or higher opens up 3% down conventional loans. Below 680, most lenders will not touch a conventional loan at any down payment. FHA becomes your option, and you will need 3.5% down.

Your debt-to-income ratio is your total monthly debt payments divided by your gross monthly income. Lenders typically want this below 43%. If you earn $5,000 per month and already have $1,500 in car payments, student loans, and credit cards, you have $3,500 left for a mortgage payment. On a $300,000 house, a larger down payment lowers your monthly mortgage payment and keeps your ratio in range.

If your credit is weak or your debt is high, putting down more than the minimum can make the difference between a lender saying yes and saying no. A 10% down payment instead of 3% might be the only way you get approved.

Closing costs and reserves: money beyond the down payment

The down payment is not the only cash you need. Closing costs on a $300,000 house typically run 2% to 5% of the purchase price, which is $6,000 to $15,000. These cover the appraisal, title search, title insurance, attorney fees, and lender fees. Some of these costs can be negotiated or rolled into the loan, but most lenders require you to pay them at closing.

Lenders also want to see reserves—cash left in the bank after closing. With a 3% down payment, many lenders require 2 months of mortgage payments in reserves. With a 5% down payment, they may require 1 month. With 20% down, reserves are often waived. On a $300,000 house with a $9,000 down payment, you might need an extra $8,000 to $12,000 in reserves to satisfy the lender.

Add it up: a 3% down payment on a $300,000 house means $9,000 down, $10,000 in closing costs, and $10,000 in reserves. You need roughly $29,000 in total cash to walk away with the keys.

Frequently Asked Questions

Can I borrow the down payment from someone else?

Yes, but with limits. Lenders allow a gift from a family member, but they require a signed gift letter stating the money does not need to be repaid. Some lenders require the gift to cover the full down payment; others allow you to combine a gift with your own savings. Borrowing the down payment from a bank or credit card is not allowed—lenders see it as extra debt.

What happens if I put down less than 3%?

Conventional loans do not go below 3%. FHA goes to 3.5%. If you have less than 3%, you need a VA or USDA loan, or you need to save more. Some lenders offer "bank statement" or "asset-based" loans that let you borrow against savings instead of income, but these are rare and expensive.

Is it better to put down 20% to avoid mortgage insurance?

It depends on your situation. Putting down 20% eliminates PMI and lowers your monthly payment, but it ties up $60,000 in cash. If you can earn more than 3% to 4% per year in a savings account or investment, keeping that money invested and paying PMI might cost less overall. Run the numbers with a mortgage calculator.

Do I have to put down the same percentage as my friend?

No. Down payment options depend on your credit, income, debt, and the lender you choose. Your friend's 10% down does not mean you can only do 10%. Shop with at least three lenders to see what down payment amounts they will offer you.

What if the house appraises for less than $300,000?

If the appraisal comes in lower, your down payment percentage goes up. If the house appraises at $280,000 and you agreed to put down 5%, you now owe 5% of $280,000, which is $14,000 instead of $15,000. But if the appraisal is much lower, the lender may refuse to lend, and you have to renegotiate the price or walk away.