See your down payment and how fast you can save it.
Enter your target home price and what you set aside each month. See the down payment you need, whether PMI applies, the total cash to close, and the month you reach your goal.
The home
What your plan means
Price split: down payment vs loan
Where the home price comes from
Savings growth toward your goal
Milestones
Down payment at every level
The same home price at common down payment amounts, with the loan, loan-to-value, and whether PMI applies.
| Down | Down payment | Loan amount | LTV | Total cash to close | PMI |
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Down payments, explained
How Much Down Payment Do You Need?
The amount you need for a down payment depends on your loan type and financial situation. Conventional loans require as little as 3% down, FHA loans need 3.5%, and VA loans require zero down payment. However, putting down 20% or more eliminates the need for private mortgage insurance (PMI), which can add $100-$300 per month to your payment. On a $350,000 home, a 20% down payment equals $70,000, while a 3.5% FHA down payment is just $12,250.
Down Payment Assistance Programs
Many state and local governments, as well as nonprofit organizations, offer down payment assistance programs for qualified buyers. These programs can provide grants that do not need to be repaid, forgivable second mortgages, or matched savings accounts. First-time homebuyers, low-to-moderate income households, and buyers in targeted geographic areas are most likely to qualify. Your state housing finance agency is the best starting point for finding programs available in your area.
How Down Payment Size Affects Your Mortgage
A larger down payment reduces your loan amount, which lowers your monthly payment and the total interest paid over the life of the loan. It also gives you immediate equity in your home and may help you qualify for a lower interest rate. On a $350,000 home, increasing your down payment from 5% to 20% reduces the loan by $52,500, saving roughly $125,000 in interest on a 30-year mortgage at 7% and eliminating PMI costs entirely.
Strategies to Save for a Down Payment Faster
Building a down payment fund requires a disciplined savings plan. Automating transfers to a dedicated high-yield savings account removes the temptation to spend. Consider reducing discretionary expenses, picking up a side income, or temporarily downsizing your living situation. Some buyers also tap into Roth IRA contributions (up to $10,000 in earnings for first-time homebuyers), receive gift funds from family, or explore employer-assisted housing programs offered by some large companies.
Common questions
Do I need to put 20% down on a house?
No. While 20% avoids private mortgage insurance (PMI), many loan programs accept less. FHA loans require as little as 3.5%, conventional loans can go as low as 3%, and VA loans require 0%. However, a larger down payment means lower monthly payments.
What is PMI and how much does it cost?
Private mortgage insurance (PMI) is required when your down payment is less than 20% on a conventional loan. PMI typically costs 0.5% to 1.5% of the loan amount per year, adding $100-$300 per month on a $300,000 loan.
Are there down payment assistance programs?
Yes. Many state and local governments offer down payment assistance programs, especially for first-time homebuyers. These can include grants, forgivable loans, or matched savings programs. Check your state housing authority for available options.
Should I drain my savings for a bigger down payment?
No. Financial advisors recommend keeping 3-6 months of emergency expenses separate from your down payment fund. You will also need cash for closing costs (2-5% of the price), moving expenses, and immediate home repairs.
Estimates for planning only. PMI rates, closing costs, savings yields and loan terms vary by lender, program and location. Confirm every figure with your lender before you commit.