How Much Is a Down Payment on a House?
The minimum required down payment typically ranges from 3% to 10%, depending on the home price and loan type — and some government-backed loans don’t require a down payment at all.
You may have heard 20% is the magic down payment amount. But although putting down that much can lower your monthly payments and help you avoid private mortgage insurance, it’s not usually necessary.
- The minimum down payment depends on your property’s purchase price and loan type. Some loans — such as VA and USDA — often don’t require a minimum down payment.
- The typical down payment was 16.5% among all homebuyers in 2025. Among first-time homebuyers, it was 10%.
- Your down payment amount can significantly impact your monthly payments and the total interest you pay over the life of your mortgage.
A down payment is the portion of a home’s purchase price that a buyer pays upfront, rather than financing through a mortgage. It’s typically expressed as a percentage of the home’s price. Your down payment amount affects your monthly payments and, if you’re taking out a conventional loan, whether mortgage insurance is required.
What’s the average down payment on a house?
The typical down payment is 16.5% overall, but a 10% down payment was average among first-time homebuyers, and 23% was typical for repeat buyers.
That works out to about $41,000 (first-time homebuyer) or $94,000 (repeat buyer) for a home priced at the national median of $410,800.
Source: 2025 profile of homebuyers and sellers report from the National Association of Realtors (NAR).
Do I need to make a 20% down payment on a home?
Fortunately, you don’t need to make a 20% down payment to buy a home in today’s market.
The 20% threshold is just a benchmark that lenders use to determine if you need mortgage insurance. As a rule of thumb, if you put down less than 20% on a conventional loan, lenders will require you to carry private mortgage insurance (PMI).
While being required to carry PMI will make your monthly payments higher and your loan more expensive, it’s a normal part of taking out a mortgage for most Americans. Plus, you can get rid of PMI as soon as you reach 80% equity in the home.
Use LendingTree’s mortgage payment calculator to see how changing your down payment can affect your monthly mortgage payment.
Minimum down payment requirements by loan type
The minimum down payment required depends on the loan type you’re looking to secure. It also depends on the type of property you intend to purchase — a primary residence, second home or rental property.
| Loan type | Primary residence |
|---|---|
| Conventional | 3% |
| FHA | 3.5% with a 580+ credit score 10% with a 500 to 579 credit score |
| VA | 0% |
| USDA | 0% |
| Jumbo | 10% to 20% |
Learn more about minimum mortgage requirements to buy a home.
How your down payment affects your mortgage
The bigger the down payment, the smaller your loan — and the less interest you’ll pay over time.
While a minimum down payment opens the door to homeownership, a larger down payment can pay off significantly over time through lifetime loan savings. Plus, if you’ve chosen a conventional loan, you can avoid expensive mortgage insurance premiums by putting 20% down.
But how big of a payoff do you get from a larger down payment? We break it down below in an example, assuming a 30-year conventional mortgage on a $450,000 house with a 6.4% interest rate.
| Loan A | Loan B | Loan C | |
|---|---|---|---|
| Down payment amount | 5% $22,500 | 15% $67,500 | 20% $90,000 |
| Loan amount | $427,500 | $382,500 | $360,000 |
| Monthly PMI cost | $223 | $199 | $0 |
| Monthly payment | $2,897 | $2,592 | $2,252 |
| Total interest | $535,154 | $478,822 | $450,656 |
Compared to someone who chose to put 5% down (Loan A), the homebuyer who put down 20% (Loan C) saves:
- Hundreds of dollars per month in PMI costs
- Nearly $85,000 in total interest
A 20% down payment will also save the homeowner around $28,000 compared to the Loan B option to put down only 15%.
Example calculations methodology: Monthly payments, PMI, and total interest were calculated using LendingTree’s mortgage calculator. Monthly payment amounts shown only include principal and interest costs for comparison, since other costs and fees do not change depending on the paid down payment amount.
How long does it take to save a down payment?
It takes more than a decade for someone with a median income to save a median down payment, according to a recent LendingTree analysis.
That said, higher-income households typically have a greater capacity to save, so that timeline is likely shorter for those with higher-than-average income. Lower-income buyers, on the other hand, may need down payment assistance to shorten their savings timeline.
Existing savings can also dramatically shorten the timeline — even modest balances can cut years off the wait.
Learn more about down payment assistance programs available to the public.
Pros and cons of making a large down payment
Pros
- No PMI: Lenders only require buyers to pay for PMI when they put down less than 20%.
- Lower monthly payments: When you put more money down, you’re borrowing less, which translates into lower monthly payments.
- Lower interest charges: Since you’re borrowing less to buy your home, you’ll pay lower interest charges over the life of the loan. Additionally, lenders may give you a better interest rate since they’ll see you as a less risky borrower.
- More equity: Your home equity is the portion of your home that you own outright. It’s measured by your home’s current value minus the amount you owe on your mortgage. The more equity you have, the more you can leverage this asset.
Cons
- Less cash on hand: Making a larger down payment often means you’ll have less money available to make repairs or meet other financial goals, like building an emergency fund or covering necessary home repairs.
- Longer time to save: Putting down 20% often means that your savings goal is fairly large. As a result, it can take longer to become a homeowner than if you made a smaller down payment.
- Long-term benefits: Many of the benefits of making a larger down payment only reveal themselves over the long term. If you’re not planning on living in the home for a while, you may not benefit as much.
Other considerations when choosing your down payment
Keep some savings on hand
Try to avoid depleting your savings to cover your down payment. It’s a good idea to keep some cash on hand to cover emergency expenses, as well as the ongoing costs of homeownership, such as maintenance and repairs.
Plan for closing costs
Closing costs account for an additional 2% to 6% of the loan amount, so it’s also important to ensure that you have enough saved to cover these expenses as well as your down payment.
Explore down payment assistance (DPA) programs
You may find that your state or county offers some DPA programs to help cover your down payment and closing costs. Many are designed for first-time homebuyers and, in some cases, you don’t need to repay the assistance you receive. Check with your local housing finance agency for more information.
Shop around for the best rate
Gathering loan estimates from multiple lenders can help you save money over time. LendingTree data suggests that shopping around could help you save more than $80,000 over the life of a 30-year loan.
You can safely and easily compare rate offers from a network of vetted lenders right on LendingTree. When you’re ready to apply for a loan, just fill out our form and see competitive quotes in minutes.
Best ways to save for a down payment
- Create a budget. Take a close look at your budget to see where you can trim expenses to funnel more money into savings. Can you eat at home more often, exercise outside to save on gym membership fees or cancel a few subscriptions? Automate your savings to make sure the funds consistently go toward your down payment.
- Increase your income. Can you start a side hustle? Maybe it’s time to look for a higher-paying job or sell things you no longer need. Any extra amount coming in can help you reach your goals.
- Manage your debt. If you have significant debt, you may want to consider a debt consolidation loan or personal loan. This can help reduce your monthly payments and add extra funds to your down payment savings.
- Ask for gifts. Family members or close friends may be willing to gift you a portion or all of your down payment funds. If they agree, you’ll need a gift letter affirming that it’s a gift and not a loan.
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