The down payment on a $300,000 house ranges from $6,000 to $90,000, depending on the loan type and your lender's rules
The amount you put down is not fixed by law or by the price of the house. It depends on what kind of mortgage you get. A conventional loan typically requires 3% to 20% down. An FHA loan requires 3.5% down. A VA loan (if you are military or a veteran) requires 0% down. A USDA loan (for rural properties) also requires 0% down. Your lender may also set a minimum higher than the program allows, and your credit score or debt-to-income ratio can affect what they will accept.
On a $300,000 purchase price, 3% is $9,000. 5% is $15,000. 10% is $30,000. 20% is $60,000. These are the numbers you will see quoted most often. But the actual amount you owe at closing also includes closing costs—typically 2% to 5% of the purchase price, or $6,000 to $15,000—which you may pay separately or roll into the loan.
Key Takeaways
- A 3% down payment on a $300,000 house is $9,000; a 5% down payment is $15,000; a 10% down payment is $30,000; and a 20% down payment is $60,000.
- FHA loans allow 3.5% down ($10,500), VA loans allow 0% down, and USDA loans allow 0% down, but each has different may be able to access rules and fees.
- Putting down less than 20% usually means you will pay mortgage insurance (PMI) on top of your monthly payment, adding $100 to $300 per month depending on the loan size and your down payment.
- Closing costs are separate from the down payment and typically run $6,000 to $15,000; some lenders let you roll them into the loan, but that increases what you owe.
- Your credit score, debt-to-income ratio, and savings history affect what down payment percentage a lender will accept, even within the same loan program.
How down payment percentage translates to actual dollars
The down payment is a percentage of the purchase price. On a $300,000 house, the math is straightforward: multiply the price by the percentage. 3% of $300,000 is $9,000. 5% is $15,000. 10% is $30,000. 20% is $60,000. These percentages are the most common thresholds lenders use, but they are not the only options.
Some lenders offer 7%, 8%, or 15% down. Some allow as little as 2% down on certain loan types. The percentage you can use depends on the loan program, your credit score, and your lender's internal rules. A lender might advertise 3% down but require 5% if your credit score is below 650 or your debt-to-income ratio is above 43%.
What changes when you put down less than 20%
If you put down less than 20%, your lender will require you to pay mortgage insurance, usually called PMI (private mortgage insurance). This is an extra monthly fee that protects the lender if you stop paying. It does not protect you. On a $300,000 house with 5% down ($15,000), PMI typically runs $150 to $250 per month. With 10% down ($30,000), it might be $100 to $150 per month. The exact amount depends on the loan size, your credit score, and the lender.
PMI stays on your loan until you have paid down the principal to 80% of the original purchase price or until you refinance. On a $300,000 loan, that means paying until you owe $240,000 or less. Depending on your interest rate and payment schedule, this can take 8 to 12 years. You cannot remove PMI early just by asking; most lenders require you to request it in writing once you hit the 80% threshold, and some require an appraisal to confirm the home's value has not dropped.
Down payment requirements by loan type
| Loan Type | Minimum Down Payment | Dollar Amount on $300K | PMI Required? |
|---|---|---|---|
| Conventional (standard) | 3% to 5% typical; 20% to avoid PMI | $9,000 to $15,000; $60,000 to avoid PMI | Yes, if under 20% |
| FHA | 3.5% | $10,500 | Yes, always |
| VA | 0% | $0 | No |
| USDA | 0% | $0 | No |
FHA loans are backed by the Federal Housing Administration and are designed for borrowers with lower credit scores or smaller down payments. The minimum is 3.5% down, which is $10,500 on a $300,000 house. However, FHA loans always require mortgage insurance, even if you put down 20% or more. This insurance comes in two forms: an upfront fee (1.75% of the loan amount, or about $5,250) and a monthly fee ($100 to $200 per month depending on the loan size and your credit). The monthly fee stays for the life of the loan if you put down less than 10%.
VA loans are for military members, veterans, and surviving spouses. They require 0% down and do not require PMI. Instead, you pay a one-time VA funding fee (1.4% to 3.6% of the loan amount, depending on your military status and whether you have used your VA benefit before). USDA loans are for rural properties and also require 0% down with no PMI, but they do charge a may provide fee (1% upfront and 0.35% annually).
Closing costs are separate from your down payment
The down payment is only part of what you pay at closing. You also pay closing costs, which typically range from 2% to 5% of the purchase price. On a $300,000 house, that is $6,000 to $15,000. Closing costs include the loan origination fee, appraisal, title search, title insurance, homeowners insurance, property taxes, and attorney fees. Some of these are paid to the lender; others go to the title company, the appraiser, or the local government.
You can ask the lender for a Loan Estimate within three days of submitting your process. This document lists every closing cost and tells you exactly what you will owe. Some lenders allow you to roll closing costs into the loan (called "no-cost" or "low-cost" financing), but this increases the amount you borrow and the interest you pay over time. If you roll $10,000 in closing costs into a 30-year mortgage at 6.5% interest, you will pay roughly $20,000 more in total interest.
How your credit score and debt affect the down payment you can make
Lenders use your credit score and debt-to-income ratio to decide whether to accept your down payment offer. A credit score of 740 or higher typically qualifies you for the advertised minimum (3% to 5% down on conventional loans). A score between 680 and 739 may require 5% to 10% down. A score below 680 may require 10% to 15% down, or the lender may decline you altogether.
Your debt-to-income ratio is your total monthly debt payments divided by your gross monthly income. Most lenders want this to be 43% or lower. If you have high student loans, car payments, or credit card balances, your ratio may be too high to may have access to for a 3% down loan, even with good credit. In that case, putting down more money (10% or 15%) can lower your ratio enough to may have access to, because it reduces the size of the mortgage payment.
Strategies for saving toward your down payment
If you do not have $9,000 to $15,000 saved, you have several options. Some employers offer down payment information as part of their benefits package. Some states and cities run down payment information programs for first-time homebuyers or teachers, nurses, and other essential workers. These programs may offer grants (money you do not repay) or forgivable loans (loans that disappear if you stay in the house for a set number of years, usually 5 to 10).
You can also ask the seller to contribute toward your closing costs. In a buyer's market (when there are more homes for sale than buyers), sellers sometimes agree to pay 2% to 3% of the purchase price toward the buyer's closing costs. This does not reduce your down payment, but it reduces the cash you need to bring to closing. Another option is to buy with a co-borrower—a spouse, parent, or other family member—so you can combine your savings.
If you have a 401(k) or IRA, some plans allow you to borrow against your balance or withdraw funds penalty-free for a first-time home purchase. A 401(k) loan does not count as debt on your credit report, so it can help your debt-to-income ratio. An IRA withdrawal for first-time buyers allows up to $10,000 lifetime, penalty-free, though you still owe income tax on the withdrawal.
Frequently Asked Questions
Can I put down less than 3% on a conventional loan?
Some lenders offer 2% down conventional loans, but they are rare and usually require a credit score above 700 and a debt-to-income ratio below 36%. Most lenders stick to 3% as the minimum. If you cannot save 3%, an FHA loan at 3.5% down or a VA/USDA loan at 0% down may be your better option.
Is PMI ever worth paying instead of saving for 20% down?
Yes, if you are paying rent and home prices are rising faster than you can save. Buying with 5% down and paying PMI for 8 to 10 years may build more equity than renting for another 3 years while you save 20%. Run the numbers with a mortgage calculator comparing your monthly rent plus savings rate against the mortgage payment plus PMI.
What if I have a gift from family for the down payment?
Most lenders accept down payment gifts from family members. You will need a signed gift letter stating the money is a gift, not a loan, and that the giver has no expectation of repayment. The lender will verify the gift came from a real bank account, not borrowed money. Some lenders limit gifts to a percentage of the down payment; others allow 100% of the down payment to be a gift.
Can I negotiate the down payment with the seller?
You cannot change your down payment after you make an offer, but you can ask the seller to contribute toward your closing costs in the purchase agreement. This is common in buyer's markets. The seller's contribution typically cannot exceed 2% to 3% of the purchase price, and it reduces the amount of cash you need at closing, not your down payment percentage.
What happens if I put down more than 20%?
You avoid PMI and reduce your monthly payment, but you do not get a lower interest rate just for putting down more. Your interest rate is set by the lender based on your credit score, the loan type, and market conditions. Putting down 25% or 30% is a personal choice based on whether you have the cash and whether you want a lower monthly payment or prefer to keep the money invested elsewhere.