The down payment on a $600,000 house typically ranges from $18,000 to $300,000, depending on the loan type and your lender's requirements

The most common down payment is 20 percent of the purchase price, which on a $600,000 house equals $120,000. But you don't have to put down 20 percent. Federal Housing Administration (FHA) loans allow as little as 3.5 percent down ($21,000), while conventional loans often accept 5 to 10 percent ($30,000 to $60,000). Some lenders will go lower, and some borrowers put down more. The amount you actually pay depends on the loan program, your credit score, the property type, and what your lender requires.

The down payment is separate from closing costs, which typically run 2 to 5 percent of the purchase price ($12,000 to $30,000 on a $600,000 house). You need to budget for both. A lower down payment means a higher monthly mortgage payment and, in most cases, mortgage insurance added to your bill each month until you reach 20 percent equity.

Key Takeaways

  • A 20 percent down payment on a $600,000 house is $120,000, but FHA loans allow 3.5 percent ($21,000) and conventional loans often accept 5 to 10 percent.
  • Putting down less than 20 percent triggers mortgage insurance, which adds $200 to $400 per month to your payment on a loan this size.
  • Closing costs are separate from your down payment and typically cost $12,000 to $30,000 on a $600,000 purchase.
  • Your credit score, debt-to-income ratio, and the property type all affect what down payment percentage a lender will accept.

How down payment percentage affects your monthly payment

The lower your down payment, the larger your loan amount and the higher your monthly principal and interest payment. On a $600,000 house at current interest rates (which vary), the difference is substantial. A $120,000 down payment (20 percent) means borrowing $480,000. A $30,000 down payment (5 percent) means borrowing $570,000—that extra $90,000 in borrowed money translates to roughly $400 to $500 more per month in principal and interest alone, depending on the interest rate and loan term.

That calculation doesn't include mortgage insurance. If you put down less than 20 percent on a conventional loan, your lender requires private mortgage insurance (PMI). On a $600,000 house with 10 percent down, PMI typically costs $250 to $400 per month. With 5 percent down, expect $350 to $500 per month. FHA loans use a different system called mortgage insurance premium (MIP), which is usually slightly cheaper but harder to remove—you may pay it for the life of the loan if you put down less than 10 percent.

FHA loans versus conventional loans for down payment

An FHA loan allows a 3.5 percent down payment ($21,000 on a $600,000 house) if your credit score is 580 or higher. FHA loans are backed by the federal government, so lenders take on less risk and can accept lower down payments and lower credit scores. The trade-off is that you pay mortgage insurance for the life of the loan if you put down less than 10 percent, and the insurance premium is built into your monthly payment.

A conventional loan typically requires 5 to 20 percent down, though some lenders go as low as 3 percent. Conventional loans don't require mortgage insurance if you put down 20 percent or more. If you put down less, you pay PMI, but you can remove it once you reach 20 percent equity in the home (either through payments or appreciation). Conventional loans usually require a credit score of 620 or higher, though 740 or above gets you better rates.

For a $600,000 house, the choice between FHA and conventional often comes down to your credit score and how long you plan to stay in the home. If your score is below 620, FHA is your main option. If you plan to stay 10+ years, the lifetime mortgage insurance on an FHA loan may cost more overall than paying PMI on a conventional loan and removing it later.

What lenders actually check before approving your down payment

Your lender won't just look at the down payment amount—they'll verify that the money is actually yours and that you can afford the monthly payment. They pull your credit report, calculate your debt-to-income ratio (your total monthly debt payments divided by your gross monthly income), and verify your employment and bank accounts.

Most lenders want your debt-to-income ratio to be 43 percent or lower. On a $600,000 house with a 20 percent down payment, your monthly principal, interest, taxes, insurance, and HOA fees (if any) might total $4,500 to $5,500 depending on your location and interest rate. That means you'd need a gross monthly income of roughly $10,500 to $13,000 (or $126,000 to $156,000 per year) to meet the 43 percent threshold. If your ratio is higher, some lenders will still work with you, but you may need a larger down payment or a co-borrower.

Lenders also verify that your down payment isn't borrowed money. If you're using a gift from a family member, the lender requires a signed gift letter stating the money is a gift, not a loan. If you're pulling from savings, they'll ask for bank statements showing the funds have been there for at least two months (to prevent fraud).

Down payment information and second mortgages

If you don't have $21,000 to $120,000 saved, some programs can help cover part of the down payment. Down payment information programs exist in most states and are run by nonprofits, local housing authorities, or state housing finance agencies. These programs typically offer grants or forgivable loans that cover 2 to 10 percent of the purchase price. Some have income limits; others don't. The catch is that many programs are only open to first-time homebuyers, and some require you to live in a specific county or work in a specific field (teachers, healthcare workers, etc.).

Another option is a second mortgage or "piggyback loan," where you borrow a smaller amount at a higher interest rate to cover part of the down payment. For example, you might take out a first mortgage for 80 percent of the price and a second mortgage for 10 percent, putting down only 10 percent yourself. This avoids PMI but saddles you with two monthly payments. On a $600,000 house, a 10 percent second mortgage would be $60,000, and your second payment might be $600 to $800 per month depending on the rate.

Closing costs and what they cover

Your down payment is only part of what you pay upfront. Closing costs are the fees charged by the lender, title company, appraiser, and other parties involved in the sale. On a $600,000 house, closing costs typically run $12,000 to $30,000 (2 to 5 percent of the purchase price). Common closing costs include the loan origination fee (0.5 to 1 percent), appraisal ($400 to $600), title search and insurance ($800 to $1,200), property survey (if required), homeowners insurance (first year premium), property taxes (prorated), and attorney fees (if required in your state).

Some of these costs can be negotiated or rolled into the loan (called "no-cost" or "low-cost" mortgages), but that increases your interest rate. On a $600,000 house, rolling $20,000 in closing costs into the loan might raise your rate by 0.25 to 0.5 percent, which adds $100 to $250 per month to your payment. Whether that trade-off makes sense depends on how long you plan to stay in the home and your current savings.

Frequently Asked Questions

Can I put down less than 3.5 percent on a $600,000 house?

Conventional loans rarely go below 3 percent, and FHA loans cap out at 3.5 percent. Some lenders offer 1 to 2 percent down programs, but they're uncommon, carry higher interest rates, and usually require a credit score above 700 and a debt-to-income ratio below 40 percent. Ask your lender what their minimum is—it varies.

What happens if I put down 15 percent instead of 20 percent?

You'll pay PMI on a conventional loan, typically $200 to $350 per month. You can remove it once you reach 20 percent equity through a combination of payments and home appreciation. On a $600,000 house, that usually takes 5 to 8 years. Your monthly payment will be roughly $300 to $400 higher than with 20 percent down (before PMI), so the total cost difference is significant over time.

Can I use a 401(k) withdrawal or loan for my down payment?

Yes, but it has tax and financial consequences. A 401(k) withdrawal is taxed as income and may trigger a 10 percent early withdrawal penalty if you're under 59½, which could cost you $3,000 to $12,000 on a $30,000 to $120,000 withdrawal. A 401(k) loan avoids the penalty but requires you to repay it, and if you leave your job, the loan is usually due within 60 days. Lenders will count the loan repayment as debt when calculating your debt-to-income ratio.

Do I need to show proof that the down payment is my own money?

Yes. Lenders require bank statements showing the funds for at least two months before closing. If the money came from a gift, you need a signed gift letter from the donor stating it's a gift, not a loan. If it came from a sale of another property or an inheritance, bring documentation of that transaction.

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

If the appraisal comes in low, you have a few options: renegotiate the price with the seller, put down more cash to make up the difference, or walk away (depending on your contract terms). If you put down 20 percent and the appraisal is 5 percent lower, you'd need to cover that gap with additional cash or the lender may not approve the loan.