For years, 20% down was treated as the gold standard for buying a home. It still has real benefits, but it is far from the only path. Many buyers purchase with much smaller down payments, and some eligible buyers put down nothing at all. The right amount for you depends on your loan program, your savings and your goals.
On a conventional loan, putting down 20% or more means you avoid private mortgage insurance. A larger down payment also means a smaller loan, which lowers your monthly payment and the total interest you pay over time. Depending on your situation, it may also help you qualify for better pricing.
The downside is time. Saving 20% can take years, and during that time you may be paying rent instead of building equity.
Conventional loans allow as little as 3% down for eligible buyers. If you put down less than 20%, you will typically pay PMI, which can be removed once your loan reaches 80% loan-to-value. For 2026, the conforming loan limit for a one-unit home is $832,750 in most areas, and up to $1,249,125 in high-cost areas.
FHA loans require 3.5% down with a credit score of 580 or higher. They tend to be more flexible about credit history, which makes them popular with first-time buyers. FHA loans include a 1.75% upfront mortgage insurance premium plus monthly mortgage insurance.
VA loans offer $0 down for eligible veterans, service members and certain surviving spouses with full entitlement. There is no monthly mortgage insurance, though most borrowers pay a one-time funding fee that can often be financed into the loan.
USDA loans also offer zero down payment for eligible buyers purchasing in qualifying rural and suburban areas. Income limits apply, and the program has its own guarantee fees.
Your down payment does not have to come entirely from a savings account. Depending on the loan program, acceptable sources may include:
Lenders will want to see where the money came from, so avoid large undocumented cash deposits in the months before you apply.
If you are buying a vacation home or rental property, expect to put more down. Lenders typically require larger down payments for these properties because they carry more risk than a primary residence. If you are considering a rental, investment property loans or DSCR loans may be worth exploring.
Putting down more is not always better. Ask yourself:
Remember that closing costs are separate from your down payment, so plan for both.
Try a few scenarios in our mortgage calculator to see how your down payment affects your monthly cost. Then talk with a loan officer, who can compare programs side by side using your real numbers.
Not sure how much you need to save? Reach out to FLO Mortgage and we will help you find a down payment strategy that fits your budget.
A FLO Mortgage loan officer can walk through your options, run real numbers and help you choose a loan that fits.
This article is for general education and is not a commitment to lend. All loans are subject to credit approval, underwriting guidelines and program availability. FLO Mortgage, Company NMLS #1835856. Equal Housing Opportunity.
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