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How Much Do You Need as a Down Payment on a House?

Writer's picture: Clarity Home LendingClarity Home Lending

Updated: May 6, 2024


Down Payment

In the market to purchase a home? You may be wondering how much you need to save for a down payment. Typically, 20% of the purchase price is needed for a down payment. But there are some mortgage options with lower down payment requirements. Here is an overview.


All amounts are percentages of the overall purchase price of the home. This does not include closing costs such as lawyer’s fees, inspections, and appraisals.

  • 20%: This is the amount that you’ll need for a traditional mortgage. This is considered the standard down payment.

  • 3.5-10%: This is amount that you’ll need for an FHA mortgage, depending on your credit score. There are income limits if you want to use this type of mortgage.

  • 0%: This is the amount that you’ll need for a VA mortgage or a USDA mortgage. There are requirements for each. The VA loan requires previous or current military service and a property appraisal. The USDA loan has location requirements and income limits.

Can I put down a lower down payment?

You can still use a traditional mortgage with less than 20% down. However, you will need to pay Private Mortgage Insurance, PMI. This monthly premium is added to your mortgage payment. I insures the lender, not you, in the event that you default on the loan.

Can I put down a higher down payment?

You can put down more than 20% as a down payment. In fact, you can put down up to 100%, in which case you wouldn’t need a mortgage at all. With a higher down payment, your monthly mortgage will be lower. It can also be easier to qualify for a mortgage, especially if you have other issues such as a lower credit score or a short income history. You should consider the overall cost of maintaining your home, however, and keep some money available in case there are repairs or maintenance that needs to be done in the future.

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