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Many people still think down payment requirements for a house start at 20 percent. However, many borrowers are able to buy homes with little or no down payment. There are loans and programs in every state to help people become homeowners, even if they haven’t saved a 20 percent down payment.
“I’ve been in this business for 30 years. Having 20 percent down is just one of those myths about lending that is out there,” says Jill Hoogendyk, then a branch manager at Prospect Mortgage in Phoenix. “Things are always changing. The only reason people usually put down 20 percent is to get out of private mortgage insurance. But we’ve always had loans with 5 percent down.”
Check how much down payment you need to buy a house. Start here (Nov 8th, 2026)
Average down payment
Many buyers put down far less than 20 percent. NAR’s 2025 Profile of Home Buyers and Sellers found that the median down payment was 10 percent for first-time buyers, 23 percent for repeat buyers and 19 percent for all buyers.
Down payments can be a very personal decision. Your financial situation will determine the size of your down payment, including whether you want to pay a lower monthly payment, avoid private mortgage insurance, or finish paying for your house quicker.
Minimum down payment requirements by loan program
Here is a look at the down payment requirements for each type of mortgage:
Conventional loan down payment requirements
You can get a mortgage through a lender that approves loans based on Fannie Mae and Freddie Mac rules (which is most lenders) with as little as 3 percent down. Fannie Mae no longer sets a 620 minimum credit score for loans it underwrites with its automated system, but each lender sets its own minimum, and many still require 620. You must offer complete documentation of your funds, job, assets and credit history. By getting a conventional loan, you can avoid FHA mortgage insurance, which lasts the entire length of the loan if you put down less than 10 percent. With a conventional mortgage, the borrower can ask to cancel mortgage insurance once the loan balance is scheduled to reach 80 percent of the home’s original value. It ends automatically at 78 percent.
Three percent down payment conventional loans are out there. The down payment can be a gift from a relative or a community mortgage program.
“Just remember that the less you put down, the more you will be paying and the higher the interest rate. Conventional loans are very credit score-driven. A 3 percent conventional loan will have much more rigid standards than FHA standards,” she says.
With any mortgage, including a conventional loan, you will run into other expenses that add up to the price of buying a new home. These include closing costs, the appraisal, the credit report cost, the first year of insurance, taxes and inspection. A home appraisal costs about $359 on average nationally in 2026 (most pay $314 to $425), according to Angi. You may also pay for a home inspection, which can include a pest inspection.
Check your mortgage rates. Start here (Nov 8th, 2026)
FHA loans
The Federal Housing Administration (FHA) backs loans with a down payment amount of as little as 3.5 percent. For an FHA mortgage, that money can be gifted, too, by a relative or through a down payment assistance program. An FHA mortgage loan is insured by the federal government, but not offered directly by the government. Instead, FHA-approved lenders offer loans based on FHA rules.
FHA mortgages have loan limits depending on where you live in the country. Additionally, FHA loans require a one-time upfront mortgage insurance fee plus annual mortgage insurance. With less than 10 percent down, the annual premium lasts the full loan term or until the borrower refinances. With 10 percent or more down, it lasts 11 years. The upfront fee can be financed into the loan.
Check your FHA eligibility. Start here (Nov 8th, 2026)
VA loans
This is a zero down payment mortgage, with no loan limits for borrowers with full entitlement. These loans are guaranteed by the Department of Veterans Affairs and borrower eligibility is based on their military service. This loan program is an excellent home-buying option for qualifying borrowers since, in addition to no minimum down payment requirement, it offers lower interest rates and no mortgage insurance.
“This is a wonderful loan. People should use it and pay zero down, and use their money for something else like investments,” she says. “Many service people don’t even use their VA benefits.” The VA loan has no fixed debt-to-income cap, but ratios above 41 percent need strong residual income or other compensating factors, and lenders often set lower limits.
VA rules state that lenders cannot charge veterans certain closing costs, such as escrow fees, as itemized fees.
Check your VA home loan eligibility. Start here (Nov 8th, 2026)
USDA loans
These loans allow 100 percent financing with no down payment through the Rural Development U.S. Department of Agriculture. The house you want to buy must be within an area designated in the program. Some of the eligible USDA loan houses are in subdivisions of big cities, too.
The program is income-driven, meaning your household income can’t be more than the limit for your area, which USDA bases on 115 percent of the median income. This type of loan also allows for a gift down payment.
Down payment assistance & first-time homebuyer programs
Down Payment Resource’s Q3 2026 index, with programs as of October 1, 2026, puts the average benefit of a down payment assistance program at about $18,000 per buyer.
If this is your first home, or you haven’t owned a home in three years or more, then you may qualify for one of the hundreds of housing and community development nonprofits working to help people become homeowners.
Find a loan with down payment requirements you can meet
Don’t let saving for a 20 percent down payment delay homeownership. A mortgage calculator can help you to understand how different down payment amounts will shape your monthly mortgage payment and speaking with a mortgage lender can help you to find the right mortgage program for you.
Check your home buying eligibility. Start here (Nov 8th, 2026)
