🏡 Home Buying Tool
Down Payment Calculator
Calculate how much down payment you need, compare all loan program minimums, and plan your savings timeline. Includes closing costs and PMI impact.
3%
Conventional Min
With PMI
3.5%
FHA Minimum
580+ credit
20%
PMI Elimination
Conventional
0%
VA / USDA
Eligible buyers
Down Payment Calculator
Based on home price
Home Details
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%
Loan & Cost Details
%
%
%
Down Payment Required
$80,000
20% of $400,000 · LTV: 80%
$320,000
Loan Amount
$12,000
Closing Costs
$92,000
Total Upfront
$2,096
Monthly P&I
📊 Down Payment Scenarios Comparison
| Down % | Down Amt | Loan Amt | Monthly P&I | PMI/mo | Total Upfront |
|---|
💰 Down Payment Savings Planner
$
$
$20,000 saved of $92,000 goal
22%
Still needed$72,000
Months to reach goal36 months
Target dateJun 2029
📊 Down Payment Impact on Monthly Cost
How Much Down Payment Do You Need?
A down payment is your initial equity stake in a home — what you pay upfront before the mortgage covers the rest. Our down payment calculator shows exactly how much you need based on the home price and your target percentage, compares all loan program minimums, and includes a savings planner to show when you'll hit your goal. Once you know your down payment, calculate your full monthly payment with our mortgage calculator and check affordability with our house affordability calculator.
📊 Down Payment by Loan Type
- Conventional 97: 3% minimum — requires PMI
- FHA Loan: 3.5% (credit 580+) or 10% (500–579)
- VA Loan: 0% for eligible veterans — no PMI
- USDA Loan: 0% for qualifying rural areas
- Conventional standard: 5–20%
- PMI elimination: 20% on conventional loans
- Jumbo loans: 10–30% typically
💡 20% Down — Is It Still Necessary?
No — 20% is a benchmark that eliminates PMI, but it's not required. Many buyers purchase with 3–10%:
- 3–5% down: Faster path to homeownership
- 10% down: Lower PMI cost, better rates
- 20% down: No PMI, lowest monthly cost
PMI typically costs 0.5–1.5%/year and is removable once you reach 80% LTV on conventional loans.
💰 Sources for Your Down Payment
- Personal savings: High-yield savings account while saving
- Gift funds: Family/friend gifts (lender gift letter required)
- Down payment assistance: State/local grants for first-time buyers
- IRA withdrawal: Up to $10K penalty-free for first home
- Piggyback loan: 80–10–10 to avoid PMI
- Selling assets: Investments, property, vehicles
📋 What Else You Need at Closing
Down payment is only part of closing day costs:
- Closing costs: 2–5% of loan (lender fees, title, taxes)
- Prepaid interest: Days 1 to month-end
- Escrow setup: 2–3 months property tax + insurance
- Home inspection: $300–$600
- Moving costs: $500–$2,000+
Total upfront = down payment + closing costs + reserves.
Frequently Asked Questions
For conventional loans, a 20% down payment eliminates the requirement for Private Mortgage Insurance (PMI). PMI is typically 0.5–1.5% of the loan amount per year, adding $100–$300/month on a $250,000 loan. PMI can also be removed later once you reach 20% equity through payments and/or home appreciation — you can request cancellation at 80% LTV, and lenders must automatically cancel it at 78% LTV. FHA loans have different MIP rules and may require insurance regardless of down payment size.
The minimum depends on loan type: Conventional 97 loans allow 3% down for eligible buyers; FHA loans require 3.5% (with 580+ credit score) or 10% (for 500–579 scores); VA loans allow 0% for eligible veterans and military; USDA loans allow 0% for qualifying rural/suburban buyers. For most buyers, FHA at 3.5% or conventional at 3–5% are the practical minimums. The lower your down payment, the more you finance and typically the more mortgage insurance you pay monthly.
Financial advisors generally recommend keeping 3–6 months of living expenses in an emergency fund even after buying a home. Draining savings entirely for a larger down payment can leave you exposed if unexpected expenses arise — especially since homeownership itself generates maintenance costs. A practical approach: put down enough to get the best loan terms you can qualify for (20% ideally, or 10% to reduce PMI), while maintaining an emergency reserve. Use our savings planner above to model how long each scenario takes.
Yes — gift funds are allowed for down payments on most loan programs, but requirements vary. Lenders require a signed gift letter stating the funds are a true gift (not a loan requiring repayment), along with documentation of the transfer. For conventional loans, some programs require that a portion of the down payment come from your own funds if putting down less than 20%. FHA allows 100% gift funds. Always confirm gift fund rules with your lender early in the process.
Closing costs are fees paid at settlement beyond the down payment. They typically include lender origination fees, appraisal, title insurance, title search, recording fees, prepaid property taxes, homeowners insurance premiums, and prepaid mortgage interest. Total closing costs generally run 2–5% of the purchase price — on a $400,000 home, that's $8,000–$20,000. Budget 3% as a starting estimate and get a Loan Estimate from your lender early in the process to see itemized costs for your specific transaction.