The down payment range for a $350,000 house

For a $350,000 house, your down payment will typically fall between $10,500 and $105,000, depending on the type of loan you choose and what the lender requires. The most common down payments are 3%, 5%, 10%, 15%, or 20% of the purchase price — meaning anywhere from $10,500 to $70,000 for this price range. The percentage you put down affects your monthly payment, the interest rate you receive, and whether you'll pay mortgage insurance on top of your loan.

The reason down payment size matters is straightforward: the more you put down, the less you borrow, and the less risk the lender takes. A lender is more willing to offer you a better interest rate when you've invested more of your own money upfront. On the flip side, putting down less money means you can buy sooner if you don't have $70,000 saved yet.

Key Takeaways

  • A 20% down payment on a $350,000 house is $70,000, which eliminates mortgage insurance but is not required by most lenders.
  • A 3% down payment is $10,500, the minimum for conventional loans, and lets you buy sooner but adds mortgage insurance costs to your monthly payment.
  • FHA loans allow down payments as low as 3.5% ($12,250) and are designed for first-time buyers, though they carry their own insurance requirement.
  • The down payment you choose affects your interest rate, monthly payment, and total cost over the life of the loan.
  • Your credit score, debt level, and savings determine what down payment options are actually available to you from a lender.

How down payment percentages translate to dollar amounts

The math is straightforward: multiply $350,000 by the percentage. A 3% down payment is $10,500. A 5% down payment is $17,500. A 10% down payment is $35,000. A 15% down payment is $52,500. A 20% down payment is $70,000. These are the amounts you would bring to closing as your own money.

The remaining balance becomes your mortgage loan. If you put down $35,000 on a $350,000 house, you borrow $315,000. If you put down $10,500, you borrow $339,500. The larger your loan, the more interest you pay over 15, 20, or 30 years — even if your interest rate is identical.

Conventional loans and the 20% benchmark

A conventional loan is a mortgage backed by a bank or lender, not by the federal government. Most conventional loans require a minimum down payment of 3%, but lenders strongly prefer 20% because it eliminates a cost called private mortgage insurance (PMI). PMI protects the lender if you stop paying, and it gets added to your monthly mortgage payment — typically 0.5% to 1% of the loan amount per year.

On a $315,000 loan (after a $35,000 down payment), PMI might add $150 to $260 per month. On a $339,500 loan (after a $10,500 down payment), PMI might add $170 to $280 per month. You pay PMI until you've paid down the loan to 80% of the home's original value, which takes years. At 20% down, you skip this cost entirely.

That said, putting down 20% is not required. Many buyers put down 5% or 10% and accept the PMI cost because they want to buy sooner or keep cash for other purposes. The trade-off is real: you pay more per month, but you own a home now instead of waiting years to save more.

FHA loans for buyers with smaller savings

An FHA loan is a mortgage insured by the Federal Housing Administration, a government agency. FHA loans allow down payments as low as 3.5%, which on a $350,000 house is $12,250. This is lower than the 3% minimum for conventional loans, making FHA an option for buyers who have saved less.

The catch is that FHA loans require mortgage insurance no matter what down payment you make — even at 20%. This insurance is called FHA mortgage insurance premium (MIP). You pay an upfront MIP at closing (usually 1.75% of the loan amount) and an annual MIP added to your monthly payment (usually 0.55% of the loan amount per year). Over time, FHA insurance costs more than conventional PMI, but it lets you buy with less saved.

FHA loans are often used by first-time buyers or people rebuilding credit, because FHA lenders are more flexible about credit scores and past financial problems than conventional lenders are.

VA and USDA loans if you meet the requirements

If you are a current or former military member, a VA loan may let you buy with zero down payment. VA loans are backed by the Department of Veterans Affairs and require no down payment, no PMI, and typically offer lower interest rates than conventional loans. The only cost is a one-time VA funding fee (usually 2.3% of the loan amount), which you can roll into the loan itself.

If you are buying in a rural area and meet income limits, a USDA loan also allows zero down payment. USDA loans are backed by the Department of Agriculture and are designed to help rural homeownership. Like VA loans, they have no PMI but do carry an upfront may provide fee.

Both of these programs have strict may be able to access rules — you must be a veteran for VA loans, and you must be buying in a USDA-designated rural area for USDA loans — but if you may have access to, they are powerful tools.

What affects how much you can actually put down

Your down payment choice is limited by three things: how much you have saved, what lenders will accept based on your credit and income, and what you want to keep in reserve. Even if you have $100,000 saved, a lender might not approve you for a loan if your credit score is below 580 (the FHA minimum) or if your debt-to-income ratio is too high. Debt-to-income ratio is the percentage of your monthly income that goes to debt payments — lenders typically want this below 43%.

You should also keep cash in reserve after closing. Closing costs (the fees to finalize the loan) typically run 2% to 5% of the purchase price, or $7,000 to $17,500 for a $350,000 house. Beyond that, you'll need money for inspections, appraisals, homeowners insurance, property taxes, and repairs the home inspection uncovers. Many financial advisors suggest keeping 3 to 6 months of mortgage payments in savings after you buy, in case you lose income or face an emergency.

How down payment size changes your monthly payment and total cost

The larger your down payment, the smaller your monthly mortgage payment. On a $350,000 house with a 30-year loan at 7% interest, the difference is substantial. A 3% down payment ($10,500) means borrowing $339,500, resulting in a monthly payment around $2,390 before taxes, insurance, and PMI. A 20% down payment ($70,000) means borrowing $280,000, resulting in a monthly payment around $1,865 before taxes, insurance, and PMI — roughly $525 less per month.

Over 30 years, that $525 difference adds up to $189,000. However, this comparison ignores PMI. With a 3% down payment, you'd also pay PMI of roughly $170 to $280 per month for 10 to 12 years, adding another $20,000 to $40,000 to your total cost. The 20% down payment still comes out ahead, but the gap narrows when you factor in insurance.

The real calculation depends on your interest rate, your local property taxes and insurance costs, and how long you plan to stay in the home. If you're only staying 5 years, the lower monthly payment from a bigger down payment might not offset the opportunity cost of having that money tied up instead of invested elsewhere.

Frequently Asked Questions

Can I borrow money from family for my down payment?

Yes, but lenders have rules. If the money is a gift, the lender typically requires a signed letter from the family member stating it is a gift and does not need to be repaid. If it is a loan, you must disclose it, and the lender will count the monthly repayment as debt when calculating your debt-to-income ratio, which may reduce how much you can borrow overall.

What if I only have $5,000 saved?

An FHA loan with a 3.5% down payment ($12,250) is out of reach with $5,000. However, some first-time buyer programs run by state housing agencies or nonprofits offer down payment information or grants. Your local housing authority or a nonprofit homeownership counselor can tell you what programs exist in your area.

Does a larger down payment may provide a lower interest rate?

Usually, yes — lenders offer lower rates to buyers with larger down payments because the risk is lower. However, your credit score, income, and the current market also affect your rate. It's worth getting quotes from multiple lenders to see how much your rate improves with a larger down payment.

What happens if I put down less than 20% on a conventional loan?

You pay PMI until your loan balance drops to 80% of the home's original purchase price. On a $350,000 house, that means until you've paid the loan down to $280,000. Depending on your down payment and interest rate, this can take 10 to 15 years.

Can I increase my down payment after I'm approved for a loan?

Yes. If you save more money between loan approval and closing, you can put down more. This reduces your loan amount, your monthly payment, and your PMI or MIP costs. Tell your lender as soon as you know you have additional funds.