Published: 2026-08-15
This article provides general information for reference purposes only and does not constitute professional legal, tax, medical, or financial advice. Rules and programs may change. Always verify current details with official sources or consult a qualified professional.
How much down payment do I need?
The traditional recommendation is 20% of the home price, but many lenders accept less. FHA loans require as little as 3.5% down, and some conventional loans allow 3% down. However, a smaller down payment may require private mortgage insurance (PMI).
What is PMI?
Private mortgage insurance (PMI) is required when you put down less than 20%. It protects the lender if you default. PMI adds to your monthly payment but can be removed once you reach 20% equity in your home.
How do I budget for a down payment?
Save for a down payment that balances your monthly budget and long-term goals. A larger down payment reduces your monthly payment and total interest, but you should keep an emergency fund. Consider all costs, including closing costs and moving expenses.