The typical down payment is between 10% and 20% of the home's price

When you buy a house, the down payment is the money you give upfront — the rest comes from a loan. Most people put down somewhere between 10% and 20% of what the house costs. So on a $300,000 house, that would be $30,000 to $60,000 from your own pocket.

The exact percentage varies widely depending on the loan type you use, how much savings you have, and what lenders will accept. There is no single "right" number — what matters is what you can afford and what your lender requires.

Key Takeaways

  • Most conventional loans (the standard type) require 10% to 20% down, though some lenders accept as little as 3%.
  • FHA loans, designed for first-time buyers, often require only 3.5% down but add insurance costs that conventional loans may not have.
  • VA loans and USDA loans can require 0% down if you meet the program requirements, but not everyone is may be able to access.
  • Putting down less than 20% usually means paying mortgage insurance, which adds to your monthly payment.
  • The percentage you choose affects how much you borrow, how much interest you pay over time, and what your monthly payment will be.

Why down payment percentages matter

The percentage you put down determines how much you have to borrow. If you put down 20%, you borrow 80%. If you put down 5%, you borrow 95%. The more you borrow, the more interest you pay over the life of the loan — sometimes tens of thousands of dollars more.

A larger down payment also affects whether you pay mortgage insurance. This is insurance that protects the lender if you stop paying. If you put down less than 20% on a conventional loan, the lender requires you to pay this insurance as part of your monthly payment. It typically costs 0.5% to 1% of the loan amount per year, split into monthly payments.

For example, on a $300,000 house with a 10% down payment ($30,000), you borrow $270,000. Mortgage insurance might add $100 to $150 to your monthly payment. With a 20% down payment ($60,000), you borrow $240,000 and skip the insurance entirely.

Common down payment percentages by loan type

Conventional loans are mortgages from banks and lenders that are not backed by the government. Most require 10% to 20% down, though some lenders accept 3% to 5%. The lower your down payment, the higher your interest rate and the more you pay in mortgage insurance.

FHA loans are designed for people buying a home for the first time or those with lower credit scores. They require as little as 3.5% down. However, FHA loans require mortgage insurance no matter how much you put down — even if you eventually reach 20% equity in the home. This insurance stays on the loan for the full term unless you put down 10% or more, in which case it drops after 11 years.

VA loans are available to military members, veterans, and surviving spouses. They often require 0% down — meaning you do not put any of your own money down upfront. You do pay a one-time funding fee instead, which can be rolled into the loan amount.

USDA loans help people in rural areas buy homes. Like VA loans, they often require 0% down. You pay a may provide fee instead, which is also rolled into the loan.

What affects the down payment percentage you can offer

Your savings are the most obvious factor. If you have $50,000 saved and the house costs $300,000, you can put down about 17%. If you have $15,000 saved, you can put down 5%. Some people save for years to reach 20% so they can avoid mortgage insurance.

Your credit score and income also matter. Lenders use these to decide whether to accept a low down payment and what interest rate to charge. A strong credit score and steady income make it easier to put down 5% or 10% instead of 20%.

The type of property also plays a role. Investment properties (houses you plan to rent out) usually require higher down payments — often 20% to 25% — because lenders see them as riskier than primary homes.

The trade-off between saving longer and paying more interest

Saving for a 20% down payment takes time. During that time, you are paying rent instead of building equity in a home. Some people decide it makes sense to buy sooner with a smaller down payment, pay mortgage insurance for a few years, and then refinance once they have paid down the loan enough.

Others prefer to wait and save the full 20% to avoid mortgage insurance altogether. The math depends on how long you plan to stay in the home, current interest rates, and how much you can save each month. There is no universal answer — it is a personal decision based on your situation.

If you do put down less than 20%, you can sometimes remove the mortgage insurance later. On a conventional loan, once you reach 20% equity (meaning you have paid down the loan enough), you can ask the lender to drop the insurance. On an FHA loan, the timeline is longer and depends on how much you put down initially.

How down payment percentage affects your monthly payment

A larger down payment lowers your monthly payment in two ways. First, you borrow less money, so the base payment is smaller. Second, you avoid or reduce mortgage insurance.

On a $300,000 house at current interest rates (which change over time), the difference between 5% down and 20% down can be $200 to $400 per month — just from the mortgage insurance and the larger loan amount. Over 30 years, that adds up to $72,000 to $144,000 in extra payments.

However, a lower down payment lets you buy sooner and start building equity in a home instead of renting. Whether that trade-off makes sense depends on your personal situation, how long you plan to stay, and what you could do with the money you would spend saving for a larger down payment.

Frequently Asked Questions

Is 20% down still the standard?

20% is a common target because it eliminates mortgage insurance, but it is not the standard anymore. Many people put down 10% or less, especially first-time buyers. Lenders now regularly accept 3% to 5% down on conventional loans, though you will pay mortgage insurance.

Can I use a gift from family for my down payment?

Yes, most lenders allow down payment gifts from family members. You will need a signed letter from the person giving the money stating it is a gift, not a loan you have to repay. The lender wants to know your total monthly debt obligations, so they need to confirm the money does not create a new debt.

What if I cannot save 20% before I want to buy?

You do not need 20% to buy a home. FHA loans require 3.5%, conventional loans can go as low as 3%, and VA or USDA loans require 0% if you are may be able to access. You will pay mortgage insurance with lower down payments, but many people find that trade-off worth it to buy sooner.

Does a larger down payment always mean a better interest rate?

Usually, yes. Lenders see a larger down payment as lower risk, so they often offer a lower interest rate. However, the difference is usually small — perhaps 0.25% to 0.5%. Shop with multiple lenders to compare what rate they offer at different down payment levels.

Can I put down more than 20%?

Yes. Some people put down 25%, 30%, or more if they have the savings. A larger down payment lowers your monthly payment and the total interest you pay, but it also means less money available for emergencies or other needs. Make sure you keep enough savings separate from your down payment.