How much is a down payment on a house?
Quick insights
- A typical down payment on a house may range from 3% to 20% of the purchase price of a home, depending on the loan type and homebuyer.
- Putting more money down may lower monthly mortgage payments, reduce lender risk and avoid private mortgage insurance on conventional loans.
- The amount you choose to put down depends on your financial situation, loan type and comfort with projected monthly payments.
Hearing “20% down” can feel intimidating to first-time homebuyers. But a down payment is usually 3% to 20% of the purchase price of the home, depending on the loan type. Learning that difference can shorten a homebuyer’s timeline significantly. Some loan programs even allow low- or zero-down options, making the first step more manageable for new buyers.
What is a down payment?
A down payment is the upfront portion of the home’s purchase price that you pay out-of-pocket, usually shown as a percentage. For example, a 3% down payment on a $300,000 home equals $9,000. In general, you can decide how much you’re willing to put down, and a lender can determine how much is needed to qualify you for a mortgage loan.
A down payment on a house can protect you as the buyer. If you want to sell your home and the market drops, you might owe more on your property than it's worth. If you made a larger down payment when you purchased your house you may break even, or possibly make money when you sell.
Do you need to put 20% down on a house?
You do not always need to put 20% down on a house. Many homebuyers pay less. According to the National Association of Realtors® (NAR), in 2025, the median down payment was 19% among all buyers. For first-time homebuyers, the median down payment was 10% and repeat buyers typically put down about 23%.
Putting 10% to 20% down can help strengthen your loan application because it shows financial readiness. More equity upfront also reduces risk for the mortgage provider because it increases the odds that they’ll be able to recover their investment if a foreclosure occurs.
The amount you need can vary based on the loan type and mortgage lender requirements.
Types of mortgage loans and their minimum down payment requirements
There are several types of mortgage loans, each with different requirements for how much you need to put down. Some programs offer flexibility, allowing homebuyers to make smaller down payments, depending on their financial situation. Four common types of mortgage loan programs include:
1. Conventional Fixed-Rate Mortgage
With a conventional mortgage, you keep the same interest rate for the life of the loan. That means the principal and interest portion of your monthly mortgage payment stays the same. These types of loans typically come in terms of 10, 15, 20 or 30 years.
If you put less than 20% down on a conventional loan, you may need to pay private mortgage insurance (PMI). The most common way to cover PMI is to pay for it in a monthly premium that's added to your mortgage payment. PMI may be calculated as 1% of your loan balance per year. The lender determines the requirement and amount.
2. Conventional Adjustable-Rate Mortgage (ARM)
Unlike a fixed-rate loan, an adjustable-rate mortgage has an interest rate that can go up or down based on market conditions. The down payment is typically between 3% and 20%, and PMI may be required for buyers who put down less than 20%.
With an ARM, the initial rate is often lower than a fixed-rate loan but applies only for a certain period. After a certain point, the interest rate can change based on economic and market conditions.
3. Federal Housing Administration (FHA) Loan
An FHA loan, insured by the federal government, may be ideal for first-time homebuyers with less-than-perfect credit scores. The down payment requirement is as low as 3.5%. Unlike conventional mortgages, mortgage insurance on an FHA loan includes an upfront amount and a monthly premium.
4. VA Loans
This type of loan is only available for U.S. military veterans and active-duty servicemembers. VA loans are funded by a lender and guaranteed by the Department of Veterans Affairs. The primary benefit of pursuing this type of loan is it may not require a down payment and has no monthly mortgage insurance.
How credit score impacts your down payment
Your credit score impacts on your loan and interest rate options. Buyers with credit scores as low as 500 might still be able to get a loan for a home, but interest rates and options vary. In general, the higher your credit score, the lower your interest rate may be.
A strong credit score also means lenders are more likely to be lenient in areas where you may not be as strong, such as your down payment. Your credit score shows you have a proven history of making payments on time, which makes you a less risky borrower. Still, the down payment can affect the interest rate a lender offers you.
Benefits of putting more than 20% down
Putting down more than 20% when buying a house can have some benefits. For example:
- A lower monthly payment due to no mortgage insurance and smaller loan amount
- Less interest paid over the life of the loan
- More flexibility if you need to sell on short notice
So, how much should you put down on a house?
Only you can decide, but you can use an affordability calculator to help figure out how much will help you buy a home in your budget. You can estimate the price of a home by entering your monthly income, expenses and more. You can adjust the loan terms to see how different factors affect the money you need to buy and pay a monthly mortgage.
Here are steps you can take to determine the house and down payment you can afford:
1. Evaluate your budget
Review your current budget and consider using a mortgage calculator. Ask your lender about their requirements for how much of your pre-tax income you should spend on housing payments and other debts.
2. Assess your home needs
Ask yourself what you really need from your home. For example, do you plan to start a family? Do you have teenagers who will soon be moving out? These are all important considerations. You need to anticipate not only the stage of life you’re in right now, but also the stages you’ll experience after you have the keys.
3. Consider your options
After evaluating your budget and what you need from your home, it’s time to consider your options. You might need to look for a loan option that allows a smaller down payment. Or, you might want to give yourself more time to save up for a larger down payment.
It can be beneficial to work with a professional who can help answer your questions. A Chase Home Lending Advisor can help you understand your finances, the different types of mortgages available and down payment requirements. Having the goal of deciding what’s right for your financial situation is a good first step.
