How Much Do I Need for a Down Payment?

One of the biggest questions buyers ask, especially first-time buyers, is how much they need to put down on a home. The good news is it’s probably less than you think. While the old rule of thumb was 20%, today’s loan programs offer far more flexibility, making homeownership more accessible than ever.

Most buyers in today’s market put down anywhere from 3% to 10%, depending on their loan type and financial situation. For example, conventional loans can start as low as 3% down, while FHA loans require 3.5%. If you’re a qualified veteran or active-duty service member, VA loans offer a zero-down option, and certain rural areas qualify for USDA loans, which also offer 0% down.

Your ideal down payment depends on your goals. A larger down payment can lower your monthly mortgage payment and potentially eliminate mortgage insurance, but it isn’t always necessary. Many buyers choose a smaller down payment in order to keep more cash available for moving costs, emergencies, or home upgrades.

💡 Pro Tip: Before deciding on a number, talk to a trusted lender. They can show you real loan scenarios side-by-side so you understand exactly how your down payment affects your monthly budget.

When you’re ready, The Bill Lanier Team can help you explore homes that fit both your price range and your financial comfort zone.