Down payment options compared
You may not need 20% down for your first home. Here's how the main options compare. A smaller down payment means less cash up front, but usually mortgage insurance and a bigger loan.
| Option | Typical minimum down | Good to know |
|---|---|---|
| Conventional, low down payment | As little as 3% for some first-time buyers | Private mortgage insurance (PMI) under 20% down; can be cancelled later. |
| Conventional, 20% down | 20% | No PMI. A smaller loan and lower monthly payment, but more cash up front. |
| FHA loan | 3.5% with a credit score of 580 or higher | Insured by the Federal Housing Administration. Has its own mortgage insurance premium. |
| VA loan | Often 0% for eligible borrowers | For eligible service members, veterans and some surviving spouses. Usually has a funding fee. |
| USDA loan | Often 0% for eligible borrowers | For eligible homes in qualifying rural and suburban areas, with income limits. |
| Down payment assistance | Varies | Grants or second loans from state and local programs. Rules and repayment terms vary. |
General information, not mortgage advice or an offer of credit. Minimums, limits and eligibility rules change and vary by lender. Check HUD.gov, VA.gov, USDA.gov and ConsumerFinance.gov, and compare Loan Estimates from several lenders. We aren't a lender and aren't paid by any.
Before you choose
Compare the monthly cost
Include mortgage insurance, taxes and insurance, not just the rate.
Keep a cushion
Don't put every dollar down. Keep an emergency fund after closing.
Get free help
A HUD-approved housing counselor can walk you through your options.
See how long your down payment will take with the down payment savings calculator.